Legal Question in Bankruptcy in California

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.

Asked on 9/08/15, 11:32 am

2 Answers from Attorneys

Asaph Abrams Law Office of Asaph Abrams

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 doesn�t address all facts & implications of the question; it�s 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 it�s independent of other answers. Seek legal counsel before acting on or refraining from bankruptcy- or other legal-action.

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Answered on 9/08/15, 11:47 am
Charles Andersen Charles Andersen, Atty

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. 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

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Answered on 9/08/15, 1:07 pm

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