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To reaffirm or not to reaffirm, that is the question

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touchofgrey

Junior Member
What is the name of your state?What is the name of your state? California
I am filing for Chapter 7 next week. I'm way upside down on my auto loan which is a little over a year old. I am, however, current in my payments. In my Statement of Intentions, I plan to say that I will surrender the vehicle because I'd rather not reaffirm unless I have to. I realize that the loan company cannot force me to reaffirm but I know they can exercise their option to take back the vehicle. My question is this, can I change my Statement of Intentions from surrender to reaffirm after filing the bankruptcy if it looks like the loan company is planning to take the car back before the discharge? I'm not so worried about them taking the vehicle back after the discharge as I should be able to get another loan at that point (which probably won't be any worse than the 19.99% I am paying now).
 


Ladynred

Senior Member
Yes, you could change your statement of intentions.
Just because you don't reaffirm doesn't mean they'll repo the car though. CA does not REQUIRE a reaffirmation or redemption to keep secured property, you just keep paying them and they'll be happy to let you have the car. Without a reaff, the debt will be discharged. If you decide later you don't want to keep the car, you walk away from it with no liability at all.

If you don't have to, I wouldn't reaffirm.
 

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