Practice Areas

• Divorce
• Child Custody & Visitation
• Child Support
• Spousal Support
• Domestic Violence
• Chapter 7
• Chapter 13

Many times in Chapter 7 or even in a Chapter 13 Bankruptcy, Automobile finance companies want to repossess your car right away. Maybe you've been behind in your payments. Maybe you don't have insurance. But if you want to keep your car, you will have to reaffirm the loan on your car.

Statement of Intention

When you file your bankruptcy, you will have to state your intention as to whether you want to surrender your car, reaffirm the debt or redeem the vehicle. Simply "riding through" - doing nothing, getting discharged and continuing to pay the car after bankruptcy generally is no longer available as an option. You have to act on your statement of intention promptly - within 45 days.

The reaffirmation agreement

To sign a reaffirmation agreement, you are again contracting with the auto finance company to pay the car loan after bankruptcy just as you owed it before. You won't get a discharge from this debt. If you don't pay the debt in the future, you're still liable personally for it. You have to be up to date with payments to reaffirm. You need to make sure that you will be able to afford the loan.

The reaffirmation hearing

If your lawyer doesn't sign off on a reaffirmation agreement, (many lawyers are refusing to sign reaffirmation agreements) you will be called to court on a Reaffirmation Hearing. Don't be afraid of this. The judge will merely ask you if you can afford to pay for the car and make sure that you are aware that you are aging responsible to make the payments. You'll explain why you need the car, whether it's the best deal you can get and how you can afford it. If all is in order, you can reaffirm before your discharge.

When to file a reaffirmation agreement

A reaffirmation agreement must be signed before your bankruptcy is discharged and if you don't sign a reaffirmation agreement, the car lender will get an order removing the automatic stay and then try to repossess your car.

At Cristiano & Lillard, we represent clients in the cities of Temecula, Covina, Canyon Lake, Glendora, Hemet, Lake Elsinore, La Verne, Murrieta, Pomona, San Dimas and West Covina, and in the following counties: Los Angeles County, Riverside County and San Bernardino County.