I'm skipping car payments after bankruptcy. Can they sue me?

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I received a discharge of debts in a Chapter 7 bankruptcy and now I can't keep making payments on the car. If they repossess the car, can they also sue me?

The answer to that question is a strong "it depends". If you signed what's called a reaffirmation agreement and it was approved by the bankruptcy judge, then the answer is yes, the auto lender can sue you and collect the amount of your loan balance that wasn't paid off from the repo sale. A reaffirmation agreement says you agree to pay that auto loan debt even though your personal liability for it was discharged (eliminated) in your bankruptcy.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Malcolm Ruthven | Attorney Advertising

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