Legal Question in Bankruptcy in California

Liability of car loan reaffirmation

I filled for bankruptcy 2 yrs ago. I

reaffirmed my car loan. I got a full

discharge but now i have fallen behnd

on 3 car payments. My car was

repossesed and now i dont know if it is

in by best intrest to get the car out

and continue payments. Im uside

down on the lown and the bank has

said that they can sue me for the

balance, but a friend whos in banking

said they generally never do that since

they would be out much more in legal

fees to prosecute me. what is the

reality of the situation and what


Asked on 11/09/08, 5:07 pm

2 Answers from Attorneys
Phillip Lemmons, Esq. Phillip Lemmons APC, Attorneys at Law

Re: Liability of car loan reaffirmation

The bank will likely turn it over to collections.

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Answered on 11/09/08, 6:08 pm
Robert Mccoy Law Office Of Robert McCoy

Re: Liability of car loan reaffirmation

The reality is that the lender probably will sue you. You cannot obtain a discharge in bankruptcy, but you could get a repayment plan in a Chapter 13 Bankruptcy. You could also hire an attorney to prepare a chapter 13 bankruptcy petition, but not file it, and use it to negotiate with the creditor. The creditor will be given the choice to either give you a payment plan or be forced into a less favorable one through the bankruptcy court.

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Answered on 11/09/08, 8:45 pm


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