More details to this question:
I have one vehicle (only). There is roughly $3000 left on the car loan. This was processed via Chapter 7 as the intent to reaffirm. The equity is covered under federal exemptions and already did my meeting of creditors. I applied pro se and thinking I should be able now with a new job pay the vehicle off prior to the end of year of when the bankruptcy would otherwise be concluded. Is reaffirmation necessary if I did this? Also, I was reading that because I only have 1 vehicle this car is viewed differently as a necessity especially for work where Wells Fargo could not repossess the vehicle if I made no more payments and the court discharged this debt down the road. Is that true? But even then, I don't believe that an individual or me in this case would be able to get the car title.
4 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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A reaffirmation is an agreement between you and Wells Fargo that the bankruptcy discharge will not apply to the vehicle loan. So, it's only available if Wells agrees. Generally, if you're paying monthly a reaffirmation agreement isn't necessary.
Answered on Sep 20th, 2017 at 2:49 AM
You are making a lot of assumptions that I cannot confirm. However, it is up to your bankruptcy judge to decide whether or not reaffirmation is or is not in your best interests under state law. As I do not know what state you are in, obviously not my state, since you claimed federal exemptions, I cannot confirm that your assumption about repossessing by the lender is accurate or not.
Answered on Aug 29th, 2017 at 5:25 PM
You do not need to reaffirm the car debt. Just keep paying off your loan and you will get the title. If you stop paying the car loan Wells Fargo will be able to repossess the car if you have an auto loan through them. An auto loan is secured by the auto.
Answered on Aug 29th, 2017 at 5:18 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Contact the creditor-preferably in writing-and let them know you wish to reaffirm the car loan. You must get the reaff. done and filed with the Court before you get a discharge. Best bet, retain an experienced bankruptcy lawyer. It's almost always worth the investment.
Answered on Aug 29th, 2017 at 5:18 PM