Legal Question in Bankruptcy in Florida
In chapter 7 if I stop paying for my car loan, can I reaffirm the car loan to a lower monthly payment and balance? Does it matter if I am current to do this? And is it possible to reduce the amount of my loan to the current value of the car?
2 Answers from Attorneys
You would have to talk to your attorney, but to reaffirm your loan, your attorney would need to communicate with the company holding the note. It is up to the company if they want to reduce the car loan. I doubt they will.
In bankruptcy, it is permissible to refinance your auto loan to the current market value of the car. The balance of the amount owed to the company that holds your current auto loan gets wiped out. However, you have to find a company willing to refinance the loan. That can be difficult. Our office handles a lot of bankruptcy cases. We offer a free initial consultation and would be happy to speak to you about the situation.
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