{"id":350,"date":"2010-12-07T14:55:15","date_gmt":"2010-12-07T20:55:15","guid":{"rendered":"https:\/\/kevinkgipson.com\/?p=350"},"modified":"2013-09-28T14:37:52","modified_gmt":"2013-09-28T19:37:52","slug":"chapter-7-bankruptcy-can-i-turn-in-my-car-if-signed-a-reaffirmation-agreement","status":"publish","type":"post","link":"https:\/\/kevinkgipson.com\/?p=350","title":{"rendered":"Chapter 7 Bankruptcy: Can I Turn In My Car If Signed A Reaffirmation Agreement?"},"content":{"rendered":"

\"\"<\/a>When you purchase a car and take out a loan to pay for the car, you are giving the lender a collateral mortgage on the car.\u00a0\u00a0 A car loan is a secured debt in a Chapter 7 bankruptcy<\/a>.<\/p>\n

In order to keep your car in a Chapter 7 bankruptcy, you will have to sign a reaffirmation agreement<\/a>.\u00a0 If you do not sign the reaffirmation agreement, or if the judge will not approve the reaffirmation agreement the lender has the right to seize the car.<\/p>\n

Chapter 7 also lets you turn the car over to the lender in full satisfaction of what is owed to the lender.\u00a0\u00a0 This means that if the car is sold and the sale price is not adequate to pay off the loan, the lender has to eat the loss.<\/p>\n

The reaffirmation agreement must be signed and filed with the bankruptcy court before your case is discharged.<\/p>\n

So what happens if you sign a reaffirmation agreement and then realize that you can’t afford the car after all?<\/p>\n

The answer is:\u00a0 It depends!<\/p>\n

When you sign the reaffirmation agreement, you are\u00a0agreeing to pay the car loan after your bankruptcy\u00a0is discharge.\u00a0\u00a0 In other words, you don’t discharge the car loan.\u00a0<\/p>\n

If you don\u2019t pay the\u00a0you will in all likelihood have the car seized\u00a0and you are\u00a0still\u00a0 liable on the debt.<\/p>\n

Fortunately, even if you signed a reaffirmation agreement and then decide you can’t pay the loan, the bankruptcy code gives you some time to change your mind.<\/p>\n

If you sign and then change your mind, you have 60 days from the date the reaffirmation\u00a0is entered with the court, or the date of discharge of your bankruptcy, whichever\u00a0is later.<\/p>\n

A Chapter 7 bankruptcy is an opportunity to get a fresh start.\u00a0\u00a0 You need to give serious thought as to whether you can afford to keep your car.<\/p>\n

Discuss your options with an experienced bankruptcy attorney.<\/p>\n

\nby Kevin Gipson<\/a>, New Orleans, Louisiana bankruptcy lawyer.<\/p>\n","protected":false},"excerpt":{"rendered":"

When you purchase a car and take out a loan to pay for the car, you are giving the lender a collateral mortgage on the car.\u00a0\u00a0 A car loan is a secured debt in a Chapter 7 bankruptcy. In order … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[120,31,45,67,64,121],"class_list":["post-350","post","type-post","status-publish","format-standard","hentry","category-bankrputcy","tag-chapter-7-bankruptcy","tag-collateral-mortgage","tag-discharge","tag-kevin-gipson","tag-new-orleans-bankruptcy-attorney","tag-reaffirmation-agreement"],"_links":{"self":[{"href":"https:\/\/kevinkgipson.com\/index.php?rest_route=\/wp\/v2\/posts\/350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kevinkgipson.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kevinkgipson.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kevinkgipson.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kevinkgipson.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=350"}],"version-history":[{"count":7,"href":"https:\/\/kevinkgipson.com\/index.php?rest_route=\/wp\/v2\/posts\/350\/revisions"}],"predecessor-version":[{"id":476,"href":"https:\/\/kevinkgipson.com\/index.php?rest_route=\/wp\/v2\/posts\/350\/revisions\/476"}],"wp:attachment":[{"href":"https:\/\/kevinkgipson.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kevinkgipson.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kevinkgipson.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}