Expert: Terry Leeders - 4/11/2009

Question
I filed chapter 7 bankruptcy 9-08in New Mexico. When I filed I stated that I intended on keeping the car and continue making payments on the loan. I have continued payments and I am current on the loan. However I pulled my credit report and it is showing the car loan  as being included in the bankruptcy and it is showing as negative credit. It is showing I'm making payments. I'm afraid of my car being reposessed. How do I get this corrected so that it shows my car was not included in the bankruptcy? How do I get the car loan  to show as good credit?

Answer
You should have signed a reaffirmation on the debt while the bankruptcy case was open.  Now that it is closed, you can try to reopen the case to get the reaffirmation agreement on file- if the court and the creditor will let you, otherwise, you can refinance the car, and then get good credit with the next lender, otherwise, you can walk away from the car and get something else.  Otherwise, the debt is discharged thru your bankruptcy case without a valid reaffirmation.