Legal Question in Bankruptcy in California

Reaffirmation

If at the time of my appearance at court I sign a reaffirmatin for my car--am I held to this--I heard I still have 90 days after that to turn my car in if I so wish. Or should I relinquish it at court? I'm just a little confused about this part. I like to plan ahead. I'm planning on filing in the next month or so before the new bankruptcy bill goes into effect.


Asked on 3/07/05, 4:47 pm

2 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Reaffirmation

First of all, if your attorney is advising that you sign a reaffirmation agreement on your car, you may want to switch attorneys, or at least get another opinion. That being said, by law a reaffirmation agreement may be rescinded within 60 days of it being filed with the court or prior to discharge, whichever is later.

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Answered on 3/07/05, 4:53 pm
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: Reaffirmation

You can change your mind on the reaffirmation agreement by rescinding with the court prior to your discharge. We usually recommend against reaffirming the car loan, because you can keep the car as long as you make timely payments, even without a reaffirmation agreement. The advantage to not reaffirming is that the car loan is still discharged, so even if you do miss the payments and the car is repossessed, you will not owe anything further because the debt was already discharged. The (small) disadvantage is that you'll probably find your car repossessed if you're a day late on the car payment.

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Answered on 3/07/05, 5:02 pm


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