Reaffirming your auto loan?
- By entering into a reaffirmation agreement for your automobile
you are promising to pay the loan even after your bankruptcy
discharges. This means you are giving up the protection
of the bankruptcy court. If something happens to you after
your bankruptcy and you cannot pay your car loan, the lender
will garnish your wages. This agreement is not in your
best interest!
Are you required to reaffirm?
Can I continue paying on a loan that I carried through
my bankruptcy without reaffirming the loan?
- Yes. The lender wants you to reaffirm your loan because
it means they can collect even after the discharge. However
most lenders will let you keep your vehicle even if you
decide not to reaffirm the loan, remember they just want
the payments. Also keep in mind that when you file bankruptcy
you lose the right to have the payments you make report
to the 3 major credit bureaus. This means you ARE NOT reestablishing
your credit!
- Apply now! Click
here to find a Bankruptcy Solution Center local affiliate
near you.
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