Can I return a car that is "closed" on my credit report after my bankruptcy?
Well, I had to file for bankruptcy because i was a victim of credit fraud. I had a clunker. My lawyer told me to get a better car before I file, even if i have to pay for high apr. Basically i’ll be screwed if my old car breaks down during the bankruptcy process- theres no way i’ll be able to get a new one. She said that as long as I keep paying for the newer car, it won’t be taken away.
I’ve been paying for the car flawlessly for a 1 1/2 yrs now. My wife and I check out a dealer to see if we can get her a car. The checks my credit and tells me the there is no record of my new car on my credit report. I’m shocked because I’ve been paying all this time and it has not been helping my credit. I check my credit report online and it says that the account has been closed during my bankruptcy. I asked my wife if we’ve been getting any bills from toyota, and she says we don’t get any bills anymore we just maintain payments every month like what my lawyer said.
Ok, a friend of ours said that i should return the car to the dealer and get a cheaper car. Since it is closed on my credit report, it shouldn’t affect my credit if i return it. Pls tell me if this is valid and why.
Thanks!
All lenders included in a bankruptcy stop reporting to the bureaus and the accounts read as "Included in bankruptcy" unless you sign a reaffirmation agreement and call the lender and ask that they continue to report.
From what you have said either you did not sign a reaffirmation agreement or did not call your lender and ask that they continue to report.
If you did not sign a reaffirmation agreement you can let the car go back and it will have no affect on your credit since it’s already been discharged. If on the other hand you did sign a reaffirmation agreement you still liable for making the remaining payments no matter what shows on your credit report.
July 20th, 2010 at 7:00 pmIf you signed a reaffirmation agreement for the car during your bankruptcy proceedings, then you will still be liable for the car. What chapter BK did you file?
You should also be aware that some lenders will close the original account, and will report it as a separate account after the bk.
You really need to call and speak with your bankruptcy attorney about the situation.
July 20th, 2010 at 7:00 pmNo!
July 20th, 2010 at 7:00 pmyou’re about to declare bankruptcy and you’;re looking at financing a 2nd CAR??? that’s insane!
1- the car you already have is probably worth less than teh loan balance
2- you can;t "return" an 18 month old car – yo can trade it in, but you’ll probably have to pay cash to pay off the loan.
no bills from Toyota? for how long? a whole lot of things sound very wrong, and I doubt you will be able to get anymore car loans for a long time and if by some miracle you do, I doubt you will be granted bankruptcy with all that recent credit activity
July 20th, 2010 at 7:00 pm