Keeping Your Car – Reaffirmation Agreements

If you want to keep your car after a chapter 7 bankruptcy, you must complete a reaffirmation agreement.  I can help you with the reaffirmation agreement.  A reaffirmation agreement is one area where it helps to have to have the experience of a Seattle – Kent bankruptcy lawyer to assist you.

If you do not sign a reaffirmation agreement, then your car company could repossess your car anytime after the bankruptcy, even if you are still making payments on time.  That is why reaffirmation agreements are so important to my clients.

A reaffirmation agreement is an agreement between you and your car lender that is approved by the bankruptcy court.   It is your agreement to exclude the car from the bankruptcy discharge and to continue making regular payments on it.  Because you are agreeing to exclude the debt from the discharge, it is important to consult with your bankruptcy attorney before signing the agreement.

If you decide to reaffirm your car, I can help you with the entire process.  First, I will obtain the reaffirmation paperwork from the lender.  Then I check to make sure it is correct.  In some cases, the car lender may lower your interest rate for a reaffirmation agreement.  This varies from lender to lender.

Most of my Seattle – Kent bankruptcy clients can reaffirm their car debt with no problem; but before I can sign and a reaffirmation agreement with the court, I have to make sure that you can actually afford the car.  This means that after you pay all of your other living expenses, you must have enough to make the car payment too.  If you do not, then the car is an undue hardship.  If the car would pose an undue hardship, you can still file a reaffirmation agreement; but you’ll have to appear before the judge to get his signature.

Reaffirming a car is a big decision.  For most people it’s not a problem.  If, however, keeping the car would be an undue hardship it may be time to think about finding another car that is more affordable.   Either way, I can guide you through the process and make sure that you understand all of your rights.

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