I am so Confused about my Auto Loan

[scarn]

My chapter 7 was discharged in June. I have a truck that was (is?) financed through Wells Fargo. I haven't received a bill from Wells since I filed, and I while I asked for a reaffirmation I never received one from Wells. I've kept up on the payments for this debt through my bank's online bill pay. I pulled a credit report on Sunday. No loan through Wells is on it, only old stuff that shows zero balance and closed. I called Wells and they told me I still have a balance of about $8000, I still need to pay them, they wont send me bills or provide me with an amortization schedule, and they were very insistent on knowing whether I was in possession of the vehicle and whether it was in good condition. The truck is worth maybe $5000. Now, I understand that they have a lien on title on this truck, but do I still owe them money? If I stop paying and they repo, do I still owe them money? Was my financial obligation to them discharged since they didn't reaffirm?

[Dougie011]

If it was discharged and you did not reaffirm, you wouldn't have any financial responsibility with them, unless I am missing something.

[scarn]

If so, I'd rather just give them the truck.

[tcreegan]

Hi scarn,

This all sounds normal....when you file BK, lenders don't want to violate the automatic stay/discharge injunction so they don't send bills, statements, amortization schedules, or report to credit bureaus..and often cut off online access although this wasn't your case.

You did not reaffirm and the debt is discharged, you are not liable for any of the debt.
You don't owe them a dime...unless you want to keep the truck.

If you want to keep the truck, keep making payments and keep it insured.
If you don't want the truck or don't want to make payments anymore, call them up and ask them where to drop the truck off.

You are in good shape, have your options open,

Tom in Colo

ps: If you keep paying (on time) ask them to start reporting the loan again. The can but they won't unless they have your permission, usually in writing.

[scarn]

Tom,


THANKS! That's great info.

[AngelinaCatHub]

Gosh, Tom is putting me out of business. I was about to state what he did. What you have done is called "paying through" and they by law and your mortgage agreement they cannot take the truck while you are current. If you do not wish to keep it, the pay through option is great as you will not be billed or sued for the deficiency. The repo however will then show on your credit if you care about such things. I don't. If you like the truck keep paying. If not, drop it like a rock. Pre arrange a replacement before hand though. 'Hub