The Court is asking for a Statement of Intention because it is a required document in all Chapter 7 cases. If you don’t file the Statement of Intention, your case will likely be dismissed due to the deficiency.

Also debts consisting of deficiencies from repossessions of motor vehicles or foreclosures of real property should be listed on Schedule F not Schedule E.

Dan Nunley

Yes, a credit union can do this because of something called cross-collateralization. Here’s a recent blog post that I wrote on this very situation.

Dan Nunley

Thanks much for answering my question. I have been so scared that because I had refinanced it would be ‘new’ debt and I’d still be stuck with the car. One less worry for me. Your website is great … if only I lived in Oklahoma, I’d be calling you for your help in filing. Your advice is much appreciated by many people here!

Regards,
Brad

Yes you will still be able to surrender the car when you file bankruptcy next month. A recent refinance of the car note will not cause any problems regarding the surrender of the vehicle and the discharge of that debt. I wish you well.

Dan Nunley

Thank You,
Brad

In my legal opinion, it is rarely in a debtor’s best interest to reaffirm a secured debt. Unfortunately, you are now bound by the terms of the reaffirmation agreement as it is too late to rescind the agreement. A reaffirmation agreement may be rescinded either prior to the discharge being entered or prior to the expiration of sixty days from the date of the reaffirmation agreement being filed, whichever date occurs later. Here’s a recent article that I wrote on this very subject.

Dan

If I was discharged from bankruptcy in June, and reaffirmed on my car is it now to late to go back and let the car go back if it is through a Buy here Pay here company?

Matt

Since you didn’t reaffirm the car note, once your discharge wiped out your liability for the car debt, the contract was no longer effective. Therefore, any payments you make post-discharge are strictly voluntary. As long as you make timely payments and stay current, finance companies are generally happy. However, if you are one day late, the finance company has the right to enforce it’s lien and repossess the vehicle. I would think that if you can make the payment and bring your account current, the finance company would be happy and call off the repossession. But obviously I can’t guarantee that.

Dan Nunley