Q: Do I have to contact my car lender if I wish to reaffirm my car loan in Chapter 7?
There is a form to be filled out in court during chapter 7 bankruptcy, regarding reaffirmation of a car loan (so I can keep my car if I make the monthly payments). My question is whether I must take any steps other than fill out the form and submit it to the court.
That is, should I contact both the dealer AND the court? Or will the dealer have all the information they need once they receive my complete form from the court in the mail?
A:
Yes, you need to contact the lender. Reaffirmation is up to the creditor. You can state your intention to reaffirm but it is the creditor's decision as to whether they wish to do so or not. The creditor usually prepares the agreement as they have all of the figures on the loan balance and will file it with the court. The creditor and you have to sign it.
You may need to discuss this with a bankruptcy lawyer. It is not always necessary to reaffirm a debt and may not be in your best interest. Hope it works out. Good luck!
Michael Francis Barrett agrees with this answer
A: You must contact both the lender and the Bankruptcy Court. This is one of many reasons, you should have retained a Bankruptcy attorney.
A: The creditor should have provided you with the form and told you to fill out and return to the for counter signature and they file with the Court.
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