Legal Question in Bankruptcy in Washington

Re-affirming Car Loan

I am about to take my paperwork into be typed up for a Chapt 7. I have included my car loan with the stipend that I would like to keep it and make payments. Even with the bankruptcy, I'm not sure I can afford to make the $182 car payments and mandatory insurance payments. There is only 12 payments left and less than 12-$1300 left on the loan. I need the car to keep working. The car barely runs and isn't worth much more than $500 in the condition that it is in currently. Is there a way that I can re-negotiate the term of the loan while re-affirming the debt with the bank? If so, should I talk to the bank ahead of time or wait until they are notified through the courts? As of this posting I am only 20 days late from being current on the loan.


Asked on 1/19/04, 2:20 pm

1 Answer from Attorneys
Peter James Law Office of Peter James

Re: Re-affirming Car Loan

It is possible the bank or finance company will negotiate new terms with you, but can't say I've ever seen it happen. Wouldn't hurt to call them in advance, but if you don't file quickly they may try to do a quick repossesion.

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Answered on 1/19/04, 3:55 pm


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