Do you have to reaffirm?

[PenutButterChip]

What is the name of your state? MA

I have a car that has never been paid late, filing a CH 7. What exactly is reaffirmation, and do I have to do it?

 

[acemagoo61]

Should change your handle

I would of thought you would use a different handle. While anybody could use your favorite handle, there is enough information posted to confirm to me that I know who you are. Long time, no see

 

[PenutButterChip]

Ooooh, Scary

It is me, I always use this name for everything. So who are you?

 

[ihatearizona]

First, you'll need to check to see if reaffirmation is required in your state.

Reaffirmation is basically an agreement that both you and your creditor sign that reaffirms the debt. The debt would not be included in your bankruptcy and should you default in the future, you would still be liable.

 

[acemagoo61]

Automobiles

All I can say is here we meet again and a car and court ends up being the central focus

 

[PenutButterChip]

 

[acemagoo61]

What is the name of your state? MA

I have a car that has never been paid late, filing a CH 7. What exactly is reaffirmation, and do I have to do it?

Reaffirmation is making an agreement with the loan company to continue to make the payments for the property (your vehicle) that they have a lien on. When you reaffirm the loan in bankruptcy you continue to make payments and you get to keep the property. Should you default on the loan after bankruptcy the property can be taken. If the property is repossessed and sold for non payment after the bankruptcy you will have to pay back the loan company any balance owed to the account after subtracting what they received for the vehicle. Since the vehicles are sold at wholesale auctions most of the time, you could end up owing a bit of money. At this point you can’t file bankruptcy for another six years. They can take you to court and get a judgment, add on attorney and court fees, etc.

If you know you can continue the payments or sell the vehicle outright should you get into trouble for more than you owe on the vehicle, you have nothing to worry about, if not, you might want to consider just how much financial exposure you would have should you default on the loan after the bankruptcy.