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HomeBankruptcyDo I've to maintain paying my automobile mortgage after I file for...

Do I’ve to maintain paying my automobile mortgage after I file for chapter?

Solely if you wish to hold the automobile. When you cease paying for it, they may repossess it.

Whenever you file a chapter 7 case, you verify a field in your paperwork that claims “reaffirm” or “give up.” When you reaffirm the debt, you retain making funds with the identical stability, phrases, and fee (see under). When you give up, then you definitely cease making funds and allow them to repossess the automobile (however because you filed bk first, they can’t report it as a repossession in your credit score, and so they can’t sue you for the distinction).

Whenever you file a chapter 13, if you wish to hold it, then you possibly can both hold paying to your straight (exterior of your chapter 13 plan), or you possibly can suggest to pay for it month-to-month as a part of your chapter 13 plan. Both approach, you retain paying for it. If you wish to give up it, then cease making funds.

So if you wish to hold one thing that you simply financed, then you must hold paying for it.

Now and again I’ve a consumer ask me if the bk worn out their automobile mortgage. They’re asking as a result of they sincerely consider that the bk would wipe out the mortgage and allow them to hold the automobile free and clear. It doesn’t work this manner. Bk discharges your private legal responsibility for the mortgage, BUT the mortgage continues to be connected to the collateral. If you wish to hold the collateral (just like the automobile), then it’s a must to hold paying for it.

When you cease paying, they can’t sue you on the mortgage, which was discharged, however they will undoubtedly repossess the collateral (your automobile or truck).


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