Q: I had a chapter 7 discharge and am turning in my Vehicle I’m still making payments on. How long do I have to turn it in
I’m still current on payments but owe no liability per my lawyer I can keep it as long as I pay. Is there a limit to how long I have to turn it in
A: Pursuant to Bankruptcy Code Section 521, you must file a Statement of Intent in your bankruptcy case within 30 days of filing your bankruptcy petition. In the Statement, you must state whether you will (1) redeem the vehicle by paying off the vehicle loan, or reaffirming the debt with the creditor by a written reaffirmation agreement, or (2) surrendering the car to the creditor. Pursuant to Section 521(a)(2) of the Code, you must perform your stated intent within 30 days following your 341 meeting (first meeting of creditors). See also, Section 362(h) of the Code. If you selected "surrender" in your Statement of Intent, the creditor can ask the bankruptcy judge to compel you to turn over the vehicle to that creditor. Usually, if you are paying the monthly debt service required by the Note, the creditor will not seek to compel the surrender, but that is not always the case.
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