Expert: Norma Duenas - California Bankruptcy Attorney - 11/11/2010

Question
Hello my husband and I filed chapter 13 in PA our case was dismissed but not closed  because of an inheritance. Our Dodge Durango the Judge denied reaffirming the car.  For the past year we have continued to make payments.  On our recent credit report the car has a  zero balance: although we still owe 8,000 on the vehicle.  WE no longer want to make payments, what will happen to the car and will the credit report change status.  Thank you Janice

Answer
If your case was dismissed that means that you are still responsible for any of the debts that were listed as part of your Chapter 13 bankruptcy. You would still be held legally responsible for repaying your vehicle even though there is a zero balance reported on the credit report. The credit report does not always provide you with an accurate picture of what is your personal liability. Unless you received a discharge in your Chapter 13 bankruptcy, you would still be personally responsible for repaying the balance on the car. The credit report information listed as a zero balance can be changed give that you didn't receive a discharge in your bankruptcy case. If you received a discharge then you are no longer personally responsible for that vehicle payment. The creditors sole recourse is to repossess the vehicle, but they would not be able to collect any deficiency balance on the car. If you need further assistance you can reach me at:

http://www.socaladvocates.com/riverside-bankruptcy-attorney