reaffirming debt

[kimsch72]

What is the name of your state? South Carolina

My husband and I have filed a ch7 bankruptcy. We had just purchased a vehicle a few months ago but due to high medical bills (had a kidney transplant and a horse accident that required surgery) we had to file. We want to reaffirm this debt. Does the creditor have to let us reaffirm, is it in their best interest if they do reaffirm the debt and if they dont want to reaffirm the debt will they come and take the vehicle. We had contacted them and they told us they had to review the account and they would let us know. Should we contunie to pay this debt or wait to make payments till we know if they will reaffirm it. Thanks for you help.

 

[Ladynred]

If you stop paying, they will repo the car, simple as that. The BK court must approve any reaffirmation agreement and its highly unlikely that the bank will refuse to take something that guarantees them their money ! In SC you cannot keep secured property without reaffirming or redeeming.

 

[kimsch72]

We were told that it is very rare for a bankruptcy court to reaffirm any debt. If the court does not reaffirm it then will we have to give the vehicle back to the creditor

 

[Ladynred]

I don't know who told you that, but its far from rare, it happens all the time for secured property. Since you cannot keep secured property in SC WITHOUT reaffirming or redeeming, then I find it hard to believe that a reaffirmation would be rejected. Obviously redemption is out of the question if you don't have the money to do so.