Can I Keep My Car Without Reaffirming?

Can you renegotiate a car loan?

Renegotiate a car loan If you just need help getting back on track, or need to make your payments more affordable, you can talk to your current lender.

Be aware that the longer the term, the more total interest you will pay before your loan is paid off..

How long must you wait between bankruptcies?

eight yearsBut once you’ve opted for this approach to wiping out debts, there are limits surrounding when you can file again. If you’ve used Chapter 7 bankruptcy specifically to discharge debts in the past, you must wait eight years before filing another Chapter 7 case.

How does reaffirmation work?

Reaffirmation is the process wherein you agree to remain responsible for a debt so that you can keep the property securing the debt (collateral). You and the lender enter into a new contract—usually on the same terms—and submit it to the bankruptcy court.

Is a reaffirmation agreement necessary?

Reaffirmation agreements, although required by the bankruptcy laws for every secured debt that the debtor will continue to pay, are often not necessary in practice. This is because the only penalty for failure to sign the reaffirmation is that the creditor might repossess the collateral securing the loan.

Can you negotiate a reaffirmation agreement?

When making an offer on a reaffirmation agreement, ask the lender to reduce the loan balance and the interest rate. Remember, this is a negotiation. You can expect the lender to come back with a counter offer. So, make your starting offer lower than the amount you are really willing to pay.

How long can you keep your car after filing Chapter 7?

If you have a car loan when you file for bankruptcy, the creditor cannot repossess the car. On average, you can expect the Chapter 7 process to take three to four months.

Can I refinance if I did not reaffirm my mortgage?

If you didn’t reaffirm your debt, you might still be able to refinance later, as long as you still legally own the home. However, if you didn’t reaffirm the debt, you can’t refinance the loan with the same lender because of bankruptcy laws. So you’ll have to find a new lender to refinance the loan.

How much does it cost to reaffirm a mortgage?

Many lenders do not charge for drafting and processing a reaffirmation. Similarly as to the fee they pay their lawyer for his/her part in the work. $6,000 seems very much inflated. Suggest they ask their lawyer to object and bring the charge to the judge.

How long do you have to reaffirm a mortgage?

This must happen before the discharge of the debts, which in a Chapter 7 case is 60 days after the Meeting of Creditors, or about 3 months after the filing of the case. After that it is too late.

Can you reaffirm a credit card in Chapter 7?

If you have a balance on a credit card at the time you file, you must list that debt on your petition. The bankruptcy laws require that you list all your debts even the debts you want to keep. It is unheard of, although theoretically possible, to reaffirm credit card debt. …

What happens if I don’t reaffirm my car loan?

You know what you’re getting into. If you don’t reaffirm the loan and surrender the vehicle, however, you won’t be liable for a deficiency balance—it will be wiped out in the bankruptcy. (Learn more about deficiency balances after car repossession.)

Can you sell your house if you did not reaffirm?

Yes, you can sell the home. The effect of no reaffirmation is that you do not have a personal obligation to pay the mortgage. You still are the titled owner and the mortgage is still a lien on the property so it must be paid in order to sell the property.

Can you keep a financed car in Chapter 7?

If you lease or finance a vehicle and file for bankruptcy, you can keep your vehicle as long as you are, and remain, current on your car loan or lease payments. Your car lender can, however, repossess your vehicle if you fall behind on your payments, and bankruptcy won’t stop that.

Can I file a reaffirmation agreement after discharge?

Reaffirmation agreements must be signed before the debtor gets his discharge in the bankruptcy. … The debtor must then file a motion to reopen the bankruptcy case, then file a second motion to vacate the discharge, then file the reaffirmation agreement with the court. Most courts will not allow debtors to do this.

What happens at a reaffirmation hearing?

What Happens at a Reaffirmation Hearing? At the reaffirmation hearing, the judge will explain any concerns he or she has with the terms of your agreement. In addition, the judge will ask you certain questions to determine whether reaffirming the debt is in your best interest.

What does retain the property and redeem mean?

Retain the Property and Redeem It – Redeeming the property involves paying the creditor the retail value of the property at the time you filed for bankruptcy, even if you owe more on the property than it is worth. Doing this requires you to file a motion with the bankruptcy court.

What happens to my car if I file Chapter 7?

If you file for Chapter 7 bankruptcy and local bankruptcy laws allow you to exempt all of the equity you have in your car, you can keep the vehicle—as long as you’re current on your loan payments. … If you have less equity than the exemption limit, the car is protected.

Can you refinance your home after Chapter 7?

Both types of bankruptcy have a specific time frame during which you cannot get a mortgage loan or refinance. Chapter 7. You must wait at least 2 years after the discharge date before you can refinance your loan. … Most lenders require that you wait 4 years after your discharge date for a conventional loan.

What does reaffirming mean?

To reaffirm something is to state or confirm it again. It can also mean to uphold, maintain, or stand by something.

What happens when you reaffirm a debt?

When you reaffirm a debt you essentially sign a new agreement that makes you personally liable on that loan again. This means that you are foregoing the benefit of your bankruptcy discharge on the reaffirmed debt. Reaffirming a debt should not taken lightly.

What happens if I don’t sign a reaffirmation agreement?

If you don’t sign a reaffirmation agreement, the lender can repossess your car after your case closes and the automatic stay lifts. Some car lenders are known to repossess the car immediately, even if you are current on payments.

What is the purpose of a reaffirmation agreement?

A reaffirmation agreement in United States bankruptcy law refers to an agreement made between a creditor and the debtor that waives discharge of a debt that would otherwise be discharged in the pending bankruptcy proceeding.

What happens if I did not reaffirm my mortgage?

If you do not reaffirm the mortgage, your personal liability for paying the debt represented by the promissory note is discharged in your bankruptcy case. … The company can foreclose the mortgage and force a foreclosure sale if you stop making payments.