Sell car before 341 or discharge?

[Clover329]

On Monday my lawyer is going to submit a letter to my bank Bout my intentions to reaffirm my car. I currently owe $9200. It's worth trade-in about $6200. I think i may be able to sell it privately for about $9500-10,000. If I decide to do that I'd pay off the car and pocket the rest. Is this ok? Would this raise any flags from the trustee?

Or would it be better to just continue with the reaffirm? Or stop making payments and then give it back to the bank and include in in bk?

[fltoo]

If the bank allows it, do not reaffirm the car. You can sell it whenever you would like to as long as it is for market value, but if it is not exempted, the trustee may go after the measly profit.

If you reaffirm, you can't include the car in the BK and won't be able to turn it in later.

[TEW]

I have a question for you. Why reaffirm the car and then sell it. ride it through wait for your discharge and then sell it.
And yes you are selling an asset that is in the BK estate there is a good chance it would raise some flags

[Clover329]

I have a question for you. Why reaffirm the car and then sell it. ride it through wait for your discharge and then sell it.
And yes you are selling an asset that is in the BK estate there is a good chance it would raise some flags

I wont need it after I move in August. At first I was going to reaffirm it because I didn't want to give up the control on when it was taken after the bk goes thru. But, now I may have a car to use and if so, I'd want to get rid of the car as soon as I can to save more money for moving.

I guess my real question is what is my best option? Try to sell the car before signing the reaffirm papers to make a little $$? Drop it off at the bank and hand them the keys so that it is IIB? Not sign the reaffirm agreement, stop making payments and use it as long as I can?

[fltoo]

Do not reaffirm. Sell the car for market value now and exempt the profit with your state exemptions or sell it after discharge.

I do not believe you should ever reaffirm a loan in BK, especially a car.

[TEW]

Do not reaffirm. Sell the car for market value now and exempt the profit with your state exemptions or sell it after discharge.

I do not believe you should ever reaffirm a loan in BK, especially a car.

I agree you should never reaffirm. It puts you more at risk then you need to be and all at a very bad time.
If you sell it before discharge you "could" hold the discharge up.

[Clover329]

I've decided not to reaffirm my car. I am going to keep it as long as I can and when my case is discharged, I am going to hand the keys over to the bank. Hopefully they won't come for it beforehand.

[Clover329]

Oh, when I drop the car off, what do I need to do to cancel my insurance policy? I need a receipt or something from the bank, right?

[kenshirley]

I think that is the right decision.
I think you have have gotten a surprise when you tried to sell it. The market is way down on cars and if you are looking a Internet sites for value or books they are not accurate at all right now.

[Clover329]

I think that is the right decision.
I think you have have gotten a surprise when you tried to sell it. The market is way down on cars and if you are looking a Internet sites for value or books they are not accurate at all right now.

Oh, definitely, plus it also doesn't help that I have a nice gash in the driver's side passenger door from when a motorcycle hit me about a year and a half ago. I think because of that, I am upside down on the loan anyway.

I also talked to my mother about using her truck. She doesn't know about the BK (), so she thinks I'm going to sell it before I move to Boston (where I won't need a car).

[kenshirley]

Good luck at the 341, ours is this Friday at 1 PM and we cannot wait!

[Clover329]

Good luck at the 341, ours is this Friday at 1 PM and we cannot wait!

THANKS! You too! I'm getting excited now...getting close to the end.