Stockton, CA asked in Bankruptcy for California

Q: Can I voluntarily surrender cars and timeshares after chapter 7 if I have not completed a reaffirmation agreement

Related Topics:
5 Lawyer Answers
Yelena Gurevich
Yelena Gurevich
Answered
  • Bankruptcy Lawyer
  • Studio City, CA
  • Licensed in California

A: generally yes. you my want to speak to your chapter 7 lawyer as well.

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA

A: If by "after chapter 7", you mean after you've initially filed your bankruptcy case but prior to the entry of Discharge, the Bankruptcy Code allows you three options for dealing with secured claims (debts for which collateral such as a car or a mortgage has been given):

-surrender of the collateral in satisfaction of the secured claim;

-redemption (payment of the secured portion of a claim, which usually is the fair market value of the collateral at the time the bankruptcy case is filed); or

-reaffirmation of the debt.

Often, a creditor holding a secured claim against your property will press the issue in the bankruptcy court, because you must indicate in your bankruptcy schedules which of the foregoing options you choose with each piece of collateral in your estate, and then you are given a limited amount of time to perform the option you choose.

Even if you retain the collateral during your bankruptcy case, your Discharge will relieve you of any obligation to pay a "deficiency" remaining after the collateral may be repossessed/foreclosed and sold at public or private sale.

Ronald Holland
Ronald Holland
Answered
  • Bankruptcy Lawyer
  • Roseville, CA
  • Licensed in California

A: The simple answer is "yes". Without a reaffirmation, the underlying debt is discharged along with the other debts and all the car creditor would be entitled to is possession of the vehicle. There are caveats to this though, such as intentional damage to the vehicle, etc., but those are unusual circumstances.

Talk to the attorney that represented you in the case.

Theodore Allan Greene
Theodore Allan Greene
Answered
  • Bankruptcy Lawyer
  • Sacramento, CA
  • Licensed in California

A: Most likely - Yes... but there are instances when yes won't apply. Check with your BK attorney to be sure. If you didn't have a BK attorney you should get a consultation with one and bring all your documents.

Harlene Miller
Harlene Miller
Answered
  • Bankruptcy Lawyer
  • Irvine, CA
  • Licensed in California

A: Good responses have already been provided to you. I urge you to talk with your bankruptcy attorney - if you didn't file with an attorney, then seek a consult with a bankruptcy attorney near you to discuss all related issues.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.