What does reaffirmation mean?

By entering into a reaffirmation agreement for your automobile ( or any other debt), it means that you give up the protection of your bankruptcy discharge for this debt. This agreement is not in your best interest! It only benefit the creditor. By entering into a reaffirmation agreement , you give the creditor the ability to act against you if you do not pay. This may include taking your wages and property!

Do I have to file a reaffirmation agreement?

No. You are not required by any law to enter into one of these agreements.

Can I continue paying on a loan that carried through my bankruptcy without reaffirming the loan?

Absolutely. The creditor would like you to reaffirm your loan because it ensure them the ability to collect on the loan. ( Reaffirmed loans are no longer considered ” included in bankruptcy”). You can continue making payments on a loan carried through bankruptcy, but it often will not report to the credit bureaus since it was included in your bankruptcy. This means that your continued payments may not be helping you re-establish your credit.

Also, if you do not reaffirm your loan, it means that at any time you are unable to make your payments, the creditor may not collect the debt from you.

Make your payments count!