We’refiling Chapter 7 ourselves butwe aream stuck on what to do about a vehicle loan, how should be handle this in the paperwork?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
We’refiling Chapter 7 ourselves butwe aream stuck on what to do about a vehicle loan, how should be handle this in the paperwork?
My husband is the guarantor on loan for a 10 year old truck that he uses for work purposes and makes the payments on, which are current. Our daughter is the main signer on the loan. Confused on how to go about completing right forms. We need to keep the truck. Do we reaffirm? Or what? Not a whole lot of information regarding this particular issue. And I did put the truck as an exemption (for automobile and tool of trade). Is that going to fly?
Asked on January 6, 2012 under Bankruptcy Law, Ohio
Answers:
Michael Duffy / Duffy Law, LLC
Answered 12 years ago | Contributor
If you have an available applicable exemption, and you'd like to use it for the truck, it's certainly an option. Whether or not it's also a tool of the trade is tricky. Different courts have interpreted that term's applicability to vehicles in a variety of ways. At least it would have to be for a primarily commercial purpose. Some courts might require that it be specially adapted for the trade. It's just an issue of the bankruptcy coruts in your area. A local bankruptcy attorney might be able to offer advice specific to your facts and jurisdiction.
In terms of reaffirming the loan, you would need the lender's agreement. It's something to seriously think about, as after reaffirmation you'd be responsible for that debt - remember, you can't file a Chapter 7 again for at least 8 years, so if you encounter difficulty making payments on that reaffirmed debt during that time the lender would have every legal recourse avaialble. If your daughter's credit is good enough, the lender might also let you just put it solely in her name.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.