A reaffirmation agreement can be advantageous to you because: You will keep the vehicle; You may be able to negotiate more favorable terms for the loan; and. Paying the loan can help rebuild your credit rating after bankruptcy.

How do I surrender my car after filing Chapter 7?

If you would like to surrender your car, you must:

1. let the bankruptcy court and the lender know on your Statement of Intentions,
2. wait for the court to authorize the lender to repossess the car, and then.
3. make the car available for the lender to repossess.

What happens if you don’t reaffirm a car loan?

If you don’t sign a reaffirmation agreement, the lender can repossess your car after your case closes and the automatic stay lifts. Reaffirming your car loan will provide certainty against the lender repossessing your car as long as you keep current with your payments.

What happens if you default on a reaffirmation agreement?

Effect of a reaffirmation agreement. However, if you default on the payments, the lender can repossess it and sell it at auction, and you’ll be responsible for any remaining balance due under the loan agreement (called a deficiency balance), as well as auction fees.

Can you file a reaffirmation agreement after discharge?

The decision also pointed out that both the statute and case law make it clear that a reaffirmation agreement will be unenforceable if it is not made before the granting of the discharge. Congress made it clear that once a debt is discharged, the debtor should not be pressured in any way to repay it.

How fast can I get my car back after filing Chapter 7?

If your car was repossessed before you filed for bankruptcy, you might be able to get the car back by filing for bankruptcy. But you must act quickly. Generally, once the car is sold at auction, you won’t get it back. The time period between repossession and auction sale varies by state but is often around ten days.