Q: totaled car that was affirmed in my bankruptcy but I kept it anyways and made payments?
I filed bankruptcy and I wanted to affirm my car but they put in my bankruptcy anyways but I still kept the car made my payment on time now my car is totaled and I still have a lien on it is the bank entitled to the funds because they took a lost in the first place or will the car just be paid off what happens in this situation
A:
When you file bankruptcy you must list all of your debts even those you intend to keep paying for your such as your car. The car lender is a secured creditor and their lien survives the bankruptcy. If you signed a reaffirmation agreement which was filed with the Court, you have reestablished your personal liability for the debt secured by the car.
If the insurance pays more than is owed on the car you should receive the excess proceeds. If you did not have gap insurance and the insurance does not pay enough to pay off the lien on the car you will owe the difference. Contact your attorney regarding the reaffirmation agreement and confirm if and when it was filed. You can search for an attorney using the Justia "Find a Lawyer" link at the top of this page.
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