I recently received a discharge order after filing chapter 7. I still owe money on a vehicle securing a loan, but the car is worthless. Do I still have to make payments on the car? There is no reaffirmation agreement. I did however use the vehicle as a deduction on the means test. If I give up the car will my deduction be updated.
-- Troy
A.
The bankruptcy discharge eliminated your personal liability for the car loan. The lender's sole remedy, since you did not reaffirm the debt, is to repossess the car if you don't pay. There is a split of opinion whether, under the recent amendments, the lender can repo the car if you are current on payments, but it's clear they can if you choose not to continue making payments.
There is no connection between continued possession of the vehicle and the means test. Absent fraud, receipt of your discharge means all of those issues are behind you.
