Riverside Reaffirming Car Loans Attorney

Southern California Bankruptcy Lawyer

Have you filed for bankruptcy or already had your debts discharged by bankruptcy? Are you current on your car payments? You may need to take an additional step to remain in possession of your vehicle. Under 2005 bankruptcy laws, your lender can consider your bankruptcy a major default on your secured car loan. If you do not reaffirm the car loan, the lender can repossess your vehicle.

Would you like to speak with an attorney about reaffirming your car loan? Please contact attorney Winfield Payne today to arrange a free consultation. Since 1979, Mr. Payne has provided hands-on legal representation by personally preparing and filing all bankruptcy documents.

Avoid Repossession by Reaffirming Your Car Loan

As your attorney, Mr. Payne will keep you informed through every stage of the bankruptcy filing. This includes answering any questions you have about your future financial obligations. Many consumers are surprised to learn that even if they have avoided car repossession through Chapter 7 or Chapter 13 Bankruptcy, they may need to take an additional step to keep their vehicle.

What Does it Mean to Reaffirm a Car Loan?

In a car loan reaffirmation agreement, you promise to pay a debt that otherwise would be eliminated in your bankruptcy. Under the current bankruptcy laws, your lender can legally repossess your car if you do not sign a reaffirmation agreement ― even if you are current on your car payments. Winfield & Associates can help you explore your options and determine if reaffirming the car loan is in your best interests. For example, if you cannot afford the payments, you do not want to reaffirm the loan. If you default on the loan, your car can be repossessed. Mr. Payne may be able to negotiate for more favorable terms under the reaffirmation agreement.

What if I Owe More Than What My Car Is Worth?

If you default on your loan and your car's value is less than what you owe the bank or lender, you will be sued for the deficiency. In this situation, you can surrender your car to the bank, reaffirm your loan or redeem the loan. In redemption, the individual pays the creditor the value of the car in a lump sum.

Do you need help with reaffirming a car loan? Mr. Payne can help. Keep in mind that once your car has been repossessed, it is too late ― contact our firm today to arrange your consultation.