Legal Question in Bankruptcy in Wisconsin

Vehicle loans which are kept current are not a problem for most of my bankruptcy clients who want to keep the vehicles and continue making their payments on time. Their personal payment obligations are technically discharged, but the creditor retains the right to repo the vehicle if they default or let their insurance lapse. Since the bankruptcy stay is automatically lifted 45 days after the bankruptcy filing (assuming no reaffirmation), the creditors can stay in touch with them and move quickly if they get behind, but this is usually not a problem so long as insurance is kept up as well as the payments. Assuming that the clients' employment is steady, the vehicle reliable and the loan not upside down, I also sometimes recommend that clients reaffirm such loans for the sole reason of establishing a good credit history after bankruptcy, which will often help their credit scores a lot, once the two year informal "cooling off" period for new lending expires.

Do not assume that I am your attorney due to this answer, but feel free to call my office in Racine (262-633-3090 or email [email protected]) for clarifications or further questions. Otherwise, I would not be taking any further action on your case. See me on the web at www.jayknixonlaw.com. View my past answers at http://www.avvo.com/attorneys/53401-wi-jay-nixon-1529181/answers.html?sort=recency , or http://www.lawguru.com/answers/search/attorney/jknixon.