QUESTION
What happens if you stop making payments on a reaffirmed RV loan that was reaffirmed during a chapter 13?
Asked on Mar 30th, 2014 on Bankruptcy - California
11 ANSWERS
When you reaffirm a debt, it is as if you never filed bankruptcy. So if you stop paying, the lender can repo the property and sue you for any deficiency (the difference between the balance owed and the sale price at the wholesale dealers action).
Answered on Apr 02nd, 2014 at 8:56 PM
There are no reaffirmations in Chapter 13.
Answered on Apr 02nd, 2014 at 8:30 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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There is no such thing as a reaffirmation in a Chapter 13, reaffirmation is a part of a Chapter 7 bankruptcy. If the bankruptcy is closed and you have failed to make payments under a reaffirmation agreement, the creditor can repossess the property and sue you for the difference if they don't sale the RV for the full amount of the loan.
Answered on Apr 02nd, 2014 at 8:02 PM
2 Awards
You need to file a motion to set aside the reaffirmation or you will be liable to the creditor for all payments.
Answered on Apr 02nd, 2014 at 7:58 PM
If the Reaffirmation Agreement was approved by the Court, and sixty days have elapsed since the Court signed the Order approving same, you can be liable on this debt. The RV Lienholder can repossess the RV, sell it, and hold you liable for the difference. If you are still in the Chapter 13, you can look at either converting your case to a Chapter 7, or letting this case get dismissed and refile another BK (7 or 13, depending on your circumstances). You may also consider doing a Post Confirmation Modification. Speak to your attorney about all these options. Good luck!
Answered on Apr 02nd, 2014 at 7:57 PM
You risk repossession and a deficiency if your case is closed. You may be able to amend your schedules to include personal responsibility if your case is on-going.
Answered on Apr 02nd, 2014 at 5:43 PM
That will be a new non dischargeable debt.
Answered on Apr 01st, 2014 at 7:44 PM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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That is strange. I haven't done any reaffirmation agreements in a chapter 13. Are you sure you reaffirmed and you are talking about a chapter 13, not chapter 7?
Answered on Apr 01st, 2014 at 4:42 AM
If you reaffirm a secured debt, such as an RV loan, in a bankruptcy, and miss a payment after the bankruptcy is finished, the lender retains their lien and they have the right to repossess the collateral. And, since you reaffirmed the debt, you will remain liable on the deficiency balance after the collateral is sold. If the lender wants to repossess while you are still in bankruptcy, they first have to obtain an order giving them relief from the automatic bankruptcy stay before they can repossess.
Answered on Apr 01st, 2014 at 4:41 AM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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You don't usually "reaffirm" in a Chapter 13 case. That concept is only applicable to Chapter 7. However, if the chapter 13 case is now completed and you still have a balance on the RV, it is possible that you still have the liability and stopping the payments would likely mean you will still be liable. However, if the Chapter 13 case is still going, you can change your plan to give up the RV instead.
Answered on Apr 01st, 2014 at 4:41 AM
Chapter 7 Bankruptcy Attorney serving Santa Monica, CA
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Law Offices of Glenn T. Litwak
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RV Loans are not reaffirmed in a chapter 13 only in a chapter 7.
Answered on Apr 01st, 2014 at 4:41 AM