What Happens If I Didn’t Reaffirm My Car Loan In Bankruptcy And I Fall Behind?
By Susanne Robicsek, North Carolina Bankruptcy Attorney on Jun 10, 2008 in Bankruptcy Practice and Procedure, Benefits of Bankruptcy, General Bankruptcy Information, North Carolina, Your Bankruptcy Attorney & You
Someone asked Georgia attorney Jonathan Ginsberg what to do with a debt that hadn’t been reaffirmed in his Chapter 7 bankruptcy case. The debtor appeared to be upset to learn that his attorney didn’t file a reaffirmation on his car loan. If the reaffirmation isn’t filed, the car might be picked up even if the debt isn’t in default but in this case the car lender didn’t do this. The lender allowed the debtor to continue paying.
The message appeared to be from a debtor who had fallen behind on his car payments 2 years after filing for bankruptcy. This particular debtor may have been helped by the fact that the debt wasn’t reaffirmed since reaffirmed or not, a car can be repossessed if the loan payments fall behind. However if the debt wasn’t reaffirmed, then all the creditor can do is pick up the car and sell it and this debtor could not be sued for any balance owed. Had the debt been reaffirmed, the debtor might have been calling asking if a creditor had the right to charge for return of his vehicle or worse yet, sue for a deficiency on a car that had been sold after default.
Read: Can A Vehicle Lender Repossess My Vehicle If I Do Not Reaffirm the Loan in Bankruptcy? By Jonathan Ginsberg, Atlanta Bankruptcy Attorney on Jun 2, 2008
by Susanne Robicsek, Charlotte NC Bankruptcy Attorney
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