Last month I filed for Chapter 7 Bankruptcy. I already signed a Reaffirmation Agreement with my lender. As I receive many deals from Auto dealers and lenders, can i trade in or sell my car now?
Please note that my car value is almost the same as my car loan balance but I'm interested to lease a new one because I found lease deals with less than my current monthly payment.
2 Answers from Attorneys
Timely rescission of the reaffirmation agreement would avert incurrence of a deficiency/negative equity from selling/trading-in the current vehicle. Paying off the current loan may benefit your credit.
This answer doesnít address all facts & implications of the question; itís general bankruptcy info, not legal advice to be relied upon. The answer creates no attorney-client relationship; it may be pertinent to CA/S. District of CA bankruptcy law only and itís independent of other answers. Seek legal counsel before acting on or refraining from bankruptcy- or other legal-action.
I've dealt with many similar issues. Most lenders just want a letter from your attorney that they don't see a problem with your receiving your discharge to trade in a car. http://www.abc27talkback.com We are a ucan lawyer not a ucan't law firm.
Getting lawyers involved can create problems and ruin deals when problems don't exist