If you stop making the voluntary payments, I guarantee that Toyota will repossess the vehicles. If you want to keep the vehicles, you need to stay current and continue to make voluntary payments.

Dan Nunley

It looks like you’ll have to decide whether it’s in your best interest to continue to make voluntary vehicle payments knowing that those payments are not being reported to the credit bureaus OR whether you should surrender the vehicle back to the finance company and go finance another vehicle which vehicle payments would be reported to the credit bureaus. I don’t know your specific situation, so I can’t advise you which choice would be in your best interest. I wish you well.

Dan Nunley

Thanks so much for the knowledge you are giving everyone thus far!

My bankruptcy was discharged June 2010. Before it was discharged I completed the reaffirmation agreement for my leased car. The finance company received the reaffirmation agreement and sent it in to the courts in April 2010 I thought I was done.

Once I received the BK discharge I contacted the car finance company to ensure I would start receiving statements again and start auto-pay etc. and they informed me that the courts never received the reaffirmation agreement (due to it be lost in the mail etc.), therefore my my car loan has been discharged BUT as long as I continue to make payments I can keep the car, and once it’s paid of I will receive the title. HOWEVER, they will NOT report my payments to the credit bureau, therefore I can’t build my credit back up this route.

Any tips or advice?

Thank you!
Sara

The specific exemption for motor vehicles allows each debtor to exempt up to $7,500.00 equity in a single vehicle. There is no provision for apportioning the amounts as you suggest. However, in my experience, a Chapter 7 trustee normally abandons his/her interest in a vehicle with equity that is minimally in excess of the allowed $7,500.00 exemption. The $1,100.00 excess equity in your scenario generally is not enough money to cause a trustee to seek the turn over and liquidation of that vehicle. After deducting expenses from the sale proceeds and then having to give the debtor $7,500.00, there would be only a minimal amount leftover for the benefit of the creditors.

Dan Nunley

What if I my wife and I file jointly and have 2 cars? one valued at 6400 and the other at 8600 equaling the 15k total for joint bankruptcy filers? Is it permitted or will the exemption be for 1 car under 7500 and not the other car over the 7500. (Those really are the car values) or at least very close depending on what you look at nada, kbb, craigslist etc…

As I am licensed to practice law only in Oklahoma, and it appears that you live in Kansas, I am prohibited from giving you legal advice. I suggest that you use the Attorney Finder provided by the National Association of Bankruptcy Attorneys to find a knowledgeable bankruptcy attorney near you. I wish you well.

Dan Nunley

As I am licensed to practice law only in Oklahoma, I am prohibited from giving you legal advice. I suggest that you use the Attorney Finder provided by the National Association of Bankruptcy Attorneys to find a knowledgeable bankruptcy attorney near you. I wish you well.

Dan Nunley