To Reaffirm or Not to Reaffirm, that is the question.

If you are thinking about filing for bankruptcy and have a vehicle with a loan balance, then you have three options: surrender, redeem, or reaffirm. When you file for bankruptcy you cut ties to all your creditors. If you want to get rid of a vehicle that you can no longer afford, then you can surrender it and the bank cannot come after you for any deficiency balance.

If you have been paying on your car for at least 910 days, then you can redeem it for fair market value. This means that you may be able to get of that negative equity. We have had success with 722 Redemption.

Reaffirming the debt simply means that you want to still be liable for the debt and you want the bank to treat you as if you had never filed for bankruptcy. This means that the bank can contact you regarding your balance, mail you a payment booklet, and report to the credit bureaus that you are making your payments on time. It also means that if you can no longer afford to make your payment and you get behind, then the bank can repossess the vehicle and try to collect on any deficiency.

As part of our bankruptcy representation, we will discuss all three options with you and figure out which is your best option.