Expert: Terry Leeders - 4/16/2008

Question
Hello, I filed chap 7 last year and was discharged in March 07. I decided to keep the vehicle but my lawyer advised I not sign the re-affirmation, just continue to pay monthly. I would like to trade in and try and get a lower interest rate and monthy payment. Should I trade in or surrender the vehicle and how does this work? I have made all of my payments on time and live in MA. Thank you

Answer
IF you have not signed a reaffirmation, you can walk away from the car and not owe another penny.  That would be the best option in my opinion, and you can go get another vehicle of your choice.  The lender will often let you keep the vehicle if you stay current, but you can give them the vehicle back and walk away.