Law & Legal & Attorney Bankruptcy & consumer credit

What Happens When You Reaffirm a Vehicle After Bankruptcy?

How It Works

  • Through bankruptcy, the court erases your liability for certain outstanding debts you owe, which includes any auto loans you have yet to pay off. When you reaffirm your loan, you sign a contract with the auto lender agreeing to pay off the loan rather than having it discharged by the court, which renders you legally liable for payment even if you discover in the future that you can no longer afford the vehicle.

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