Ch 7 auto payment helps qualify but I want to not reaffirm

[alo]

When I fill out the forms, I qualify for ch 7 pretty easily. The auto payment I have helps. But I would like to get rid of the car after filing. Is this ok? How?
Basically, if I don't reaffirm the debt should I fill out the forms without a car payment and car maintenance allowances? I do need a car but not this high payment. Thanks.

[TXskyblue]

What you do is you check the box saying you intend to reaffirm it. You can then count it on expenses. Later, you can change your mind and not follow through on the reaffirmation. There is no law that says you cannot change your mind. This is commonly done.

Once the BK is discharged, stop paying and let them come pick up the vehicle.

[alo]

Thx! Just hired an attorney but am trying to educate myself beforehand.

[bcohen]

Like TXskyblue said, you can--and should--say on your Statement of Intentions that you are going to reaffirm, even if you are behind on the payments, or simply don't want to keep the car. This will allow you to count the monthly payment as an expense for means testing purposes. Then, after the case has been filed, you are free to "change your mind" and not reaffirm.

You could also quit paying the monthly payments after the case is filed, and continue driving the car for several months--payment-free--until the discharge is granted, at which point the automatic stay ends and the creditor will probably repo. As long as the car loan is paid current at the time of filing, the lender CANNOT legally report any late payments or repossession which might take place after you file for bankruptcy, because that would violate the automatic stay/discharge injunction. All they can do at that point is repossess their collateral and report that the loan was discharged in bankruptcy with a balance of $0 owed.