Q: Do I make payments during chapter 7 on title loan?
I recently asked a question. I am looking to update my forms and submit a reaffirmation agreement for my vehicle as I do not want to lose it. While the reaffirmation agreement is being processed in the proceedings do I continue to make payments as I normally would. I would like to know as I am going to update my case with the middle court of Florida today.
A: Ask your lawyer. You can try but they may not accept them until the read is approved by the court. It varies state to state.
If you want to keep the vehicle, and the trustee does not object, then you may be able to reaffirm the loan in your bankruptcy.
However, keep in mind that the payment normally needs to be current throughout the life of the loan. While repossession rarely occurs during the automatic stay, you'll need to ensure payments are current when it is lifted.
A common problem folks run into is that once a bankruptcy case is filed, the lender won't accept payments in the format you're accustomed to.
You will need to discuss the specifics of this with your attorney. Best of luck!
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