Legal Question in Bankruptcy in New York

Re: Bankruptcy Discharged and Car

It depends on several things, but the way this situation (which is not uncommon) usually works out is you turn the car over to the bank and the bank resells the car to try to make back the money they lost in your bankruptcy that way. You get nothing from the sale unless they sell for more than the loan balance plus their attorney' fees and costs associated with your bankruptcy (that kind of sale is not likely). They can't go after you for any balance left on your loan after the sale since that was, you say, properly discharged.

If, though, the car was NOT properly discharged for whatever reason (reaffirmation of the loan, improper listing of the loan, whatever), the creditor would be able to go after you for the balance of the loan after the sale of the car.

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