I am currently going through my bankruptcy process and my next step is to Reaffirm the car loan i have. I have been in contact with the creditor and the reaffirm they want to do is the same monthly payment and APR I had before since I was not behind on any payments nor have I ever been late. I have been told that reaffirming isnt a good ideal and I questioned the creditors lawyer about this and they told me that even if the court was to deny my reaffirmation agreement that as long as I stay current on my payments that I can keep my car. Sooo my question why do we even do a reaffirmation agreement if I can keep my car anyways. What is the purpose of a Reaffirmation then?
You will need to review this with your attorney. Reaffirmation is not required by bankruptcy law but then again there are certain creditors who will repo your car, even if you are current, just because you did not sign the reaffirmation agreement.
Plus, it strips away all protection you had from the bankruptcy.
So I am not a fan of reaffirmation but this is why you have an attorney, to give you advice on sticky situations like this.
I am not your attorney unless you and I have signed a retainer agreement. What I am saying is not legal advice. Do not act on this information without engaging my services, this is for consideration only.
The purpose of a reaffirmation is the law and when the bankruptcy law was changed for your protection, the vehicle finance companies spent a lot of money to make sure you would be pressured into being fully committed to the car loan in order to keep your vehicle. Some lenders insist on a reaffirmation or they will repo the vehicle after the bankruptcy. No experienced bankruptcy attorney believes reaffirmation is in your best interests, but you may have no choice. Hope this perspective helps!
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