Auto loan question

[kmayesaz]

My 341 hearing was on Dec 23rd (in Arizona). I originally listed my auto as a secured loan and stated I would reaffirm. However, I have now decided I will not reaffirm because the lender refused to reduce the principal and/or reduce the interest rate. (Based on that, the attorney will not sign the reaffirmation anyway.) Do I stop making payments to the lender? And do I return the car to the dealer that sold the car to me? Or do I just wait until they send someone to repossess the car?
(Questions I should ask my attorney I know, but he just seems to be "not available".).

thank you

[LadyInTheRed]

Are you interested in continuing payments and keeping the car? If so, call the lender and ask whether they will repossess if you don't reaffirm but keep payments current.

If you don't want to keep the car, then stop making payments and wait for them to come pick it up. They have to either wait until after your discharge or file for relief from the automatic stay.

[kmayesaz]

Thank you LadyInTheRed. Will this debt be discharged with the other debts or will my attorney have to file and amendment to the petition to show I did not reaffirm the debt?

[bcohen]

The debt is discharged with regard to you personally, unless a reaffirmation agreement is signed and approved by the judge. Of course, the lender's lien against the car remains intact. If you quit paying now, or several months down the road, the bank can repossess the car, but they cannot come after you for any deficiency balance, including towing, storage, and auction fees.

[kmayesaz]

Thank you bcohen. That settles it for me! No more payments to the lender.