I am just curious, we have chosen not to reaffirm car loan at this time. We however don't know how long we will keep car. When the time presents do we just call bank to surrender car or can we trade it in?
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If the lender has not already repoed the vehicle you simply call it to make arrangements to surrender it. Trading in the car makes no sense as all that will happen is the balance owed will be added to your new purchase.
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I am at a loss with this. We have equity in the car I am not sure if at this point the right thing is just to reaffirm before its to late.
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What state are you in and who is the lender?
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I live in delaware and lender is chaseComment
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Read this case. . .
In re Baker, 390 B.R. 524 (Bankr.Del., 2008)
Under the Third Circuit's opinion in Price, because the Debtors timely entered into a reaffirmation agreement (regardless of whether the agreement was approved by the Court) they may retain their vehicle while staying current on their loan payments. The Court further finds that a default based upon the Debtors' filing of bankruptcy is an unenforceable ipso facto clause because the Debtors timely entered into a reaffirmation agreement (regardless of whether the agreement was approved by the Court)
Here is a link. . .
Looks like you can enter into a reaff and the court can refuse to agree to it. Similar to my state.
If the link doesn't work google 309 B.R. 524 and you will find it.
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