Expert: Mark J. Markus- California Bankruptcy Attorney - 3/22/2007

Question
I was discharged in May 2000.  Prior to my bk, I was paying $616 a month for my vehicle and due to a miscalculation on the part of the bank, it was mistakenly reduced to $308.  After my bk (yes, the car was in the bk), I've continued to keep and pay on my vehicle $308 a month.  The vehicle is beginning to have problems (besides barely making a dent in the principle) and I would prefer to be rid of the headache.  The 7 year loan is about to be at the end date.  Can I take the car back to the bank and hand them the keys and buy another car?  Should I buy another car first and then take the car to the bank?  Do I have to pay the principle in full at the end of the loan term?  HELP!

Answer
I find it unlikely that you would still owe money on a vehicle that you owed money on in a bankruptcy that ended 7 years ago, since most vehicle loans are for a maximum of 5 years, but assuming your facts are correct, then assuming your prior case was a Chapter 7 and as long as you didn't enter into a reaffirmation agreement with the vehicle's creditor, then you should be able to turn the car in now with no further obligation.