Expert: Mark J. Markus- California Bankruptcy Attorney - 7/24/2006

Question
We filed for bankruptcy in Aug or Sept 2005 and it was discharged in Oct 2005.  At that time we decided to keep one of our cars.  We are now in the market to trade it in and are having trouble.  first they can not find the car on credit report so I was told it was part of the bankruptcy and second know one will take it as a trade in because to my records I owe about 5000.00 more than what it is worth.  I was told  by the dealership it maybe eaiser to have the bank repo it since it was under the bankrupcty anyway.  Will this hurt us at all? can this really be done?  If we get a load through the same bank and then quit making payments on the old car can they take both of them back?  

Answer
If you did not sign and file a reaffirmation agreement on the vehicle loans, then the debts on them were presumably discharged in your bankruptcy case and you can return them now without further obligation.  As far as whether the bank would cross-collateralize the old car with a new loan, that depends on how you structure the new financing.