“Dear Steve,

I filed bankruptcy and reafirmed my car. I then lost my job. Now my car is going to be repossed. I am several months behind.

How can I keep my car now that I have found steady employment and can make the payments

Ray”

I asked my friend Mike Killian to answer your question for you. I wanted to make sure you got an answer as quickly as possible as I’m a bit backed up at the moment. I’ll be watching the comments on this question and be around to help if you need me.

Dear Ray,

I am assuming you filed a chapter 7 since reaffirming is more associated with a chapter 7 than a chapter 13. If by chance you are dealing with a chapter 13, you can contact your attorney or the court and explain your dilemma and there is a small chance of a little wiggling room. Additionally you can also change to a chapter 7 to include the car, which I know you want to keep. But that would be an option.

Again, however I assume you filed a chapter 7 and the law is pretty clear. Per the Moran Law Group, “The debtor can chose to waive the discharge as to a debt that is reaffirmed. Generally, the parties to the reaffirmed debt have the same rights and liabilities that each had prior to the bankruptcy filing: the debtor is obligated to pay and the creditor can sue or repossess if the debtor doesn’t pay.“

As such, one of the few things you can do is to contact the lender and see if any arrangements can be made to pay the back payments over time.

I wish there was better news but there simply is not.

Sincerely,

Mike

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