Most likely your Chapter 7 case will be completed successfully. But be aware of these essential steps to make sure it does happen. You’ve filed a Chapter 7 “straight bankruptcy” case, which stopped all creditor collections actions against you. About a month later you’ve gone through the Meeting of Creditors with the Chapter 7 trustee. Now within two more … Read More
Here is a handy summary of when to reaffirm your secured debt (like a vehicle loan) under Chapter 7 vs. cramming it down under Chapter 13. The last 4 weeks of blog posts have been about options for keeping collateral through Chapter 7 and Chapter 13. Mostly these options have involved reaffirming a secured debt in Chapter 7 or … Read More
In theory the terms of a reaffirmation agreement are negotiable. But many creditors require you to be current on the debt to reaffirm it. Two blog posts ago we introduced reaffirmation agreements, and in the last one we discussed their risks. Today we get into what happens if you are not current on a debt that you want to … Read More
You are allowed to exclude a secured debt—to keep your vehicle or furniture, for example—by reaffirming and not discharging the debt. Last time we got into debts that you might voluntarily pay after a Chapter 7 case out of personal obligation. Today we cover debts voluntarily paid but for the purpose of keeping the collateral that’s securing the debt. … Read More
If your vehicle is worth less than you owe on it, under Chapter 7 you can keep it by “redeeming” it–paying its present value in full.
In a Chapter 7 case you “reaffirm” your vehicle loan if you want to keep your vehicle. This means you keep paying it.
Sometimes, even if what you bought is legally collateral on a debt, you can just write off and not pay the debt yet keep what you bought.
A secured debt effectively turns into an unsecured debt if you surrender the collateral, which may make sense to do more than you think.
A reaffirmation agreement is a document, usually prepared by your vehicle lender, which you sign and is then filed at the bankruptcy court.
A reaffirmation agreement makes you still liable on your vehicle loan so you can keep your car or truck after writing off your other debts.
Chapter 7 has many important features deserving appreciation.
Two similar scenarios, two very different solutions for keeping a vehicle if you’re behind on payments.
Bankruptcy pays a lot of attention to and can help you deal with your secured debts in many favorable ways.
Both the Chapter 7 and Chapter 13 types of bankruptcy give you excellent ways to either keep andâif you wantâsafely let go of your vehicle.
Chapter 7 gets rid of judgment liens and older income taxes, lets business debtors avoid the “means test” and lets you keep a vehicle loan.
- Page 1 of 2