Legal Question in Bankruptcy in California

Reaffirmation and Spouse's credit score

I recently received a discharge for Ch 7 as a sole person. All the debt was my own, except for a car which my husband is joint owner.

I learned that the reaffirmation agreement was never received. If we walk away from the vehicle, what will show on my husband's credit?

If we ''keep and pay'' - do we risk having the car repossessed (loan is from credit union). If we pay off the car, can they still repossess (years down the line?)

Thanks!


Asked on 12/10/08, 1:15 am

1 Answer from Attorneys
L.A. BK Atty Leon Bayer Bayer, Wishman & Leotta

Re: Reaffirmation and Spouse's credit score

If you pay off the car, it won't be repossessed.

If it is repossessed, it will damage his credit very badly.

The "keep and pay" option is available at the discretion of your lender. Under the new law, they may have the right to reposess if the debt was not reaffirmed.

Read more
Answered on 12/10/08, 11:01 am


Related Questions & Answers

More Bankruptcy Law questions and answers in California