Re: Reaffirming car loan under chapter 7 -additional question for WhyChat
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Posted by LadynRed
(188.8.131.52) on September 05, 2002 at 11:05:26:
In Reply to: Re: Reaffirming car loan under chapter 7 -additional question for WhyChat posted by Pearl on September 04, 2002 at 22:47:37:
No, they can't force you to sign the reaffirmation agreement. For the most part, as long as you keep paying them, they'll let you keep the car. During your BK procedures though, they won't be able to bill you or contact you and most have separate addresses for mailing in 'bankruptcy' payments, so you need to find out what that address is and send in your payments religiously. Another thing to note.. if you reaffirm, its likely they will force you to pay, up front in advance, for inflated insurance coverages. That's a gotcha they won't tell you about !
As for the protection WhyChat referenced, it means that filing for bankruptcy comes with an automatic stay from collections. Once you've filed, they will NOT be able to come after you for any 'deficiency' and if you include it in the bankruptcy, then any deficiency would be discharged, so you would have no liability.
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