reaffirmation
Date: Wed, 10/13/2010 - 03:35
I have reaffirmed my car loan 3 months back. However, I have lost my job few days back. I don't think I will be able to make the payments to the creditors. What will happen now? Can they take my car away? What should I do now? Please help.
If you reaffirmed your loan after a bankruptcy, you are no longe
If you reaffirmed your loan after a bankruptcy, you are no longer covered by the bankruptcy action, so yes they can repo your car. Plus they can come after you for any deficiency balance.
Quote:Originally Posted by AnonymousI have reaffirmed my car loa
Quote:
Originally Posted by Anonymous I have reaffirmed my car loan 3 months back. However, I have lost my job few days back. I don't think I will be able to make the payments to the creditors. What will happen now? Can they take my car away? What should I do now? Please help. |
The answer to this depends. . .
1. You have 60 days to rescind the Agreement. The 60 days runs from the day the Reaffirmation Agreement was filed with the Court or the date of your Discharge, which ever is later. If the 60 days has not run you must IMMEDIATELY send a written notice to the lender and the lender's attorney if there was one as well as the Court stating that you are "rescinding" the Agreement. If you are able to rescind within the required time then the lender gets the car but cannot sue you.
2. If you are beyond the 60 days as noted above and you fail to pay, the lender will repo the vehicle, sell it, apply what it gets at the sale to the loan and then proceed to collect from you the balance as state law allows.
Des.
If you're not able to make the payments to the creditors, then a
If you're not able to make the payments to the creditors, then are legally entitled to repossess your car. They may sell the car to get back their money. After that they will try to collect the deficit balance from you. So, if you want to keep your car to yourself, then try to collect money from friends and family and pay off the outstanding balance.