I have read something about a reaffirmation.... what is that?
Probably yes. Most individuals who file BK continue to keep their cars. A reaffirmation agreement is simply an agreement with the creditor that says, despite your BK, you agree to remain liable on the obligation.
When you file for BK you have 3 options with respect to your vehicle. You can redeem it, reaffirm the obligation, or surrender it. The best way for you to handle your auto debt depends on a number of factors.
If you are considering BK to resolve current financial difficulties, you should seek the advice and counsel of a BK attorney in your area so you can decide on a plan that will work for you going forward.
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I agree with Mr. Daymude buy I would add a possible fourth option. Depending upon who your lender is it may be possible to just retain the car and pay the loan without actually signing a reaffirmation agreement.
You should consult with and retain an experienced bankruptcy attorney to assist you with your filing.
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Chapter 7 Bankruptcy Attorney
There is the issue of can you keep your car and then there is the issue of should you keep your car. If you sign a reaffirmation, you are agreeing to pay for the car as if you hadn't filed bankruptcy & this can be a big risk if the car deteriorates in some way - and they often do.
It may be hard to believe, but once your bankruptcy ends, you will be approached by many lenders to purchase a vehicle. Some of these offers will be good, some will be poor.
It is your decision to make. Hope this perspective helps!
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