TK1978

Reaffirmed auto loan still reporting as "included in bankruptcy"

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Hi

My bankruptcy was discharged in NOV 2011. I reaffirmed my auto loan, which I thought was the best thing to do at that time. Although I have continued to make payments ON TIME, the lender still reports to credit bureau as "included in bankruptcy", with a ZERO balance. Because I am trying to rebuild credit, I purchased a new car. I did not trade in the existing car because I was upside down which would have added more costs to my new loan. I no longer need the "old" car. I have thought about doing a Voluntary Repossession. If the lender has already reported as "included in bankruptcy", can they legally change that reporting status if I do a Voluntary Repossession? My credit score is improving and I do not want to do anything to negatively impact that, however I need to get rid of the "old" car.

Please help!

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You really ought to check with your BK attorney on this one. By reaffirming, you agreed to pay it off even though it was IIB. I think the trustee is likely to want some money...

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Technically, the car was included in your bankruptcy, regardless of the reaffirmation. Post-bankruptcy, the voluntary repo is probably a bad idea, it can go on your CR as a repo.

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You can be sued personally for any deficiency post-reaff.

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