Waterford, MI asked in Bankruptcy for Michigan

Q: I went through chapter 7 bankruptcy and kept my car. Why does my credit report say closed account do I have to pay on it

Want to know if they will come take the car if I stop paying. Just a little confused nothing was explained to me

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2 Lawyer Answers
Robert Keyes
Robert Keyes
Answered
  • Bankruptcy Lawyer
  • Ypsilanti, MI
  • Licensed in Michigan

A: Did you sign a reaffirmation agreement and was it filed? If so then you can keep the car as long as you keep current on the payments.

If you didn’t sign a reaff then the lender will probably repo it if you stop paying.

You probably didn’t sign/file a reaff. That would explain the credit report entry.

Thomas. R. Morris agrees with this answer

Thomas. R. Morris
Thomas. R. Morris
Answered
  • Bankruptcy Lawyer
  • Farmington Hills, MI
  • Licensed in Michigan

A: If the creditor has a lien on the car, it will be able to repossess the car if you do not pay for it. There may be other options, however. If the car is worth less than what you owe, you may be able to make a deal.

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