Hi All, It has been many moons since I've posted but can think of no better place to seek advice regarding my current problem. When I filed Chapter 7 BK in April 2000, I spoke with a rep at Wells Fargo regarding a leased vehicle. I wanted to keep the vehicle and the representative advised that it would not be necessary to reaffirm the debt. In her view reaffirming would be just another way to pay my lawyers. She said as long as I kept making the payments, I could keep the car. I took her advice and continued making payments on time every month. For over two years, Wells Fargo reported this as a positive tradeline which as you can imagine boosted my credit rating considerably. In October 2002, they started reporting the line as included in BK even though I had not included it in BK and even though they had been reporting it as a positive tradeline for over two years post discharge. All my positive credit history with them was deleted as a result. The lease termination date is coming up. There is some minor damage to the car which would have to be repaired before turning it in, but am wondering what my real obligations are here. Sounds crappy of me but if I had not taken their advice, I would have had a positive tradeline on my CR and I feel no obligation to be particularly honorable. Am I responsible for the minor damage to the car or can I just turn it in because I am not responsible for any debt incurred under a BK account? (I'd rather use the $$ as a down for a new car with a tradeline that reports my positive payment history) Attendant to this issue is that after discharge they resumed sending my invoices every month. Is this legal and if not, can I use it as leverage? Thank you for your help! Mirage7
I would say that they are SOL on collecting anything else from you. They report that the account was IIB, and thus are acknowledging that your liability of the vehicle is zero. Take it back, hand them the keys, and say "have a nice day." Of course, after you have your new vehicle.
My neighbor had the same situation on a lease. had 120K miles on a three year lease and didnt have to pay anything. just turned the keys in and said thanks. also crap 1 gave him a car loan @ 10% on a used (2 year old) car. td
Thanks so much to each of you. This is what I suspected was the case. Do you know if the invoices received after they changed my status to included in BK violated the stay of BK? I'm wondering if I can get the tradeline removed completely in exchange for the violation if it is one. Thanks again for your input!
What does your lease say about BK? Some leases say that you're automatically in default if you file BK. But if you were technically in default, they should have taken some action long ago. Their biggest problem that I can see is that, unless you listed them on any of your BK schedules--even though you were still going to pay--they have no cause for changing the status of your TL and claiming that the debt was IIB. I really can't see how it benefits them to claim the debt was IIB.
If the vehicle was included in BK, just drop off the car. However, from a credit standpoint, it seems far better to notify the CRAs that the vehicle was not included in the BK, and repair the car. Remember, dealers pull and AUTO FICO, which is different from your consumer score. Auto history is weighed heaviest, and the cash you pay to repair the car may, in the long run, be much lower than the interest you have to pay, over time, when and if you finance another vehicle.
Thanks so much for all of your replies. I wish I could get the tradeline reported as not included in BK. I have tried to no avail and have given up that hope. Again, had I known that this would be the outcome I would have returned the car years ago. Nevertheless, we are here now. Thanks again for your help!
