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Bankruptcy Law/motorcycle payment

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Question
Hello, when I filed BK ch 7 I tried to reaffirm my motorcycle because my grandmother is the primary on the loan. The judge denied the reaffirmation. He said it would protect me. That being said I am struggling to make the payments and was considering turning it in. My question is since it wasn't reaffirmed, will this repo effect my grandmas credit? It is already filed in my BK. Please advise. Thank you for your time! Sincerely, Jeremy

Answer
I'm not sure of the effect of a repo on her credit, but I can tell you that the lender will be pursuing your grandmother for any deficiency balance owing after they sell for chump change at the auction and apply to your balance.  Your bankruptcy wouldn't in all likelihood show on her bankruptcy but if they've tied her credit to your loan on the credit reporting (and unless she pulls a report on herself you'd never know that), then she'll be affected by a repo.

Legally they can pursue her;  your chapter 7 bankruptcy doesn't stop that, unfortunately.

I hope that helps.

Lee Horner  

Bankruptcy Law

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LEE HORNER, ESQ.

Expertise

Consumer bankruptcy questions invited. I've been filing Chapter 7, 11 and 13 cases since 1985 in Calif and Arizona. I do NOT do homework questions. Let me know what state you're located in when you write. My bankruptcy practice is limited to California and Arizona but inquiries from other states are welcome. Your local jurisdiction determines exemptions. Find more background information at our website, www.freshStartAz.info. Individual Chapter 11 and small business chapter 11 questions invited. We can also advise on the creditor's side if for example you have a fraud case, money judgment etc against someone who has filed (or is threatening) bankruptcy. We have filed and defended numerous adversary complaints in bankruptcy court and opposed trustees' demands for turnover of assets from time to time.

Experience

My partners and I have filed over 5000 consumer and small business cases to date in California and Arizona.

Organizations
I've been a member of the California bar since 1984 and Arizona since 2004; also a member of the National Association of Consumer Bankruptcy Attorneys, Bankruptcy section of the Arizona State Bar, Tucson Association of Consumer Bankruptcy Attorneys, Arizona Consumer Bankruptcy Counsel and American Hellenic Educational and Progressive Association (AHEPA).

Publications
I've written a booklet on land trusts for real estate owners, players and dealers, and co-authored a special edition of "Stop Sitting on Your Assets". I was a writer of a monthly law review article relating to California real estate issues and pending and recently enacted legislation.

Education/Credentials
Attorney at law, experienced in trial procedures, adversary complaints filed and defended and numerous claims objection proceedings as well as filing cases for consumer and small business debtors.

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