Need Some Advise Please......

[technoreid1]

We are in the middle of a CH7 where we signed a re-affirmation agreement
with current auto lender.......

*Can we sell our car (or are we even allowed to sell it) while in "the middle" of a BK7 -

We have about 30-45 days to go until discharge......

*Reason I ask this is because we might want to sell our car and try to get a leased car under a relatives name or buy a USED car..... (we need to get our monthly payments down as our current vehicle payments are too high)


thanks, techno

[FreshLikeADaisy]

I don't think you would be allowed to "short sell" it for less than what you owe on it, but if you can sell it for at least what is owed that would be great all around. But what you REALLY REALLY REALLY want to do is rescind that reaffirmation agreement as soon as you can; when you get your discharge and close the case, the reaff becomes set in stone and you owe according to the terms therein. You could still sell the car and satisfy the debt, but me... I'd rescind that puppy ASAP if there was any chance I would not be keeping the car. You selling it is actually doing them a favor.

Those are just my thoughts but others might have something different to add. Good luck!!!

[CindyLou]

I agree with Daisy! You need to rescind the agreement,

But then all you have to do it give it back..you don't even have to sell it.

[technoreid1]

Well it looks like that if we sell the car we will (hopefully) break even. We would not owe Toyota any money.... I am very sure we would satisfy the loan.....

Would this matter or not if we have signed the reafirmation agreement?

thanks, techno

I don't think you would be allowed to "short sell" it for less than what you owe on it, but if you can sell it for at least what is owed that would be great all around. But what you REALLY REALLY REALLY want to do is rescind that reaffirmation agreement as soon as you can; when you get your discharge and close the case, the reaff becomes set in stone and you owe according to the terms therein. You could still sell the car and satisfy the debt, but me... I'd rescind that puppy ASAP if there was any chance I would not be keeping the car. You selling it is actually doing them a favor.

Those are just my thoughts but others might have something different to add. Good luck!!!

[JRScott]

By signing the reaffirmation agreement and filing it with the court you agree to pay the balance of what you owe. If you sell it for less than what you owe on it , you would still owe the deficiency balance.

At the same time you are not finished with your bankruptcy, if you have a lawyer call them up and ask about surrendering the car. I"d be surprised if they've signed the reaffirmation if it poses a burden on you at this point anyway. I'm pretty sure you can amend the filing and surrender the car instead.

[technoreid1]

But if it is possible to sell the car and possible make a little money on it wouldnt it be worth just trying to sell the car?

Not exactly sure if I would make any $ but I will at least break even.

techno

By signing the reaffirmation agreement and filing it with the court you agree to pay the balance of what you owe. If you sell it for less than what you owe on it , you would still owe the deficiency balance.

At the same time you are not finished with your bankruptcy, if you have a lawyer call them up and ask about surrendering the car. I"d be surprised if they've signed the reaffirmation if it poses a burden on you at this point anyway. I'm pretty sure you can amend the filing and surrender the car instead.