If I need to file a Chapter 7 but I want to keep my car and not have my monthly payments change, what can I do?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I need to file a Chapter 7 but I want to keep my car and not have my monthly payments change, what can I do?
I live in WI. I have a joint car loan with my father. If I simply keep making my payments will everything be fine? Will this negatively affect my father’s credit?
Asked on September 5, 2011 under Bankruptcy Law, Wisconsin
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
To keep the car and continue making payments, you will need to reaffirm the debt. Reaffirming the debt means that you keep the car and continue making payments. On the bankruptcy forms, you will need to state that you are reaffirming the debt with this particular creditor. You will also need to indicate on the bankruptcy forms that you father is also on this auto loan.
When you reaffirm a debt, the creditor will usually offer you better terms (reduced monthly payments, etc.).
As long as you continue making the car payments, it should not affect your father's credit; however, it would be advisable to discuss that credit issue with a bankruptcy attorney.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.