Cardfan2021

Need help my car is in limbo Post Bankruptcy

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I live in Arizona and back in May 2018, I filed for Chapter 7 Bankruptcy and I had to give up my vehicles I could no longer afford.  In late June of 2018 I was able to finance a lower priced vehicle - even though it had a higher interest rate but was something I could afford.  The local credit union who financed the loan was aware that my bankruptcy was to be finalized soon had no problem giving me the loan. I had thought that this was a first step in rebuilding my credit.  Fast forward 2 years now, the vehicle I purchased in 2018 that is only 3 years old now had the transmission go completely out and the manufacturer will not warranty it.  I am caught in a situation where I am better off trading the car in than fixing it.  With 2 years of payments under my belt I had hoped my credit had recovered some imagine going my surprise to find out that the Credit Union had never reported any of the payments I had made on my credit report and instead reported it as charged off as part of the bankruptcy in September 2018.  They were never listed on my bankruptcy at all.  To make matters worse when I called the credit union yesterday, who has been happy to take my payments for the past 2 years to find out my payoff, the amount they told me was the original amount of the loan from 2018. They can’t explain where my payments went! I don’t know what to do with the car - right now I just want to give them the keys and say take it, you already charged it off 2 years ago. I truly do not know how to fix this, any advice?

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You might need a consumer attorney or if you had a BK attorney to work through this. It should have never been included in your BK because you obtained the loan after you filed for BK and the Credit Union might use that against you if you default. You do need to find out where the payments went though because they are required to apply them to the loan, even one that was discharged in BK because you are allowed to pay off a loan that was discharged. Again, the attorney can help with that.

Also, avoid making multiple threads of the same topic. It helps to keep everything in one thread.

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