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Should You Reaffirm Your Vehicle in Bankruptcy?

by DeLadurantey Law Office, LLC on June 16, 2014

Black car frontWhen you file a Chapter 7 bankruptcy, you must decide what to do with your vehicle. Your options include surrendering your car back to the lender, redeem it (purchase it for its market value price), and reaffirming it (enter a new contract with the lender). This blog will focus on what it means to reaffirm your car loan debt.

First, you must determine whether you can afford your vehicle. Your lender may offer you more favorable terms if you agree to keep the car and make timely payments on the loan. Your attorney can review your finances and help you figure out if you will be able to meet your repayment obligations.

Next, you should consider whether you actually need the car or truck. If the vehicle loan is going to be burdensome to you and your family, you may want to consider your other options. For example, you could use public transportation, borrow a vehicle from family or friends, or purchase a less expensive vehicle for cash.

Finally, it is important to fully understand what it means to sign a reaffirmation agreement with your lender. This means that you remain liable to pay the full amount of the reaffirmed debt and it is not discharged. Thus, it is an important decision and one that you should discuss thoroughly with your bankruptcy lawyer.

If you would like a down-to-earth approach and a lawyer who will listen carefully to all your questions and concerns, call DeLadurantey Law Office, LLC,at (414) 377-0518. We serve clients primarily in the areas of student loan law, Chapter 7 and Chapter 13 bankruptcies, debt negotiations and defending foreclosure actions. If you live in the area of Milwaukee, Wisconsin, call us for the debt relief assistance you need. Visit our web site and like us on Facebook.

 

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