July 20, 2019 By:
You won’t be able to reaffirm a car note without the permission of the bankruptcy court. The judge will typically review the proposed arrangement to ensure that you need that car and that the amount you promise to pay is reasonable and within your means. You must also show that having and making the agreed-upon payment won’t impose an unreasonable hardship on you or your family. If you change your mind, you have up to 60 days from the date you enter into the reaffirmation agreement to rescind it and forfeit the vehicle.
A reaffirmation can give you the transportation you need to hold down a job, but you should think carefully before agreement to reaffirm a car loan. Once you do, you’ll lose all protections under the bankruptcy laws, including the automatic stay (with respect to the car only). That means a creditor may call, write or even take legal action if you fall behind, and your bankruptcy petition won’t protect you.
I provide a free initial consultation to anyone with questions or concerns regarding a bankruptcy filing. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.