Legal Question in Bankruptcy in Virginia

Reaffirmation Agreement

I filed Chpt 7 in Northern Virginia (Fairfax) in 12/08. I have always and still am making timely payments on my car loan and have a little over $2000 left to pay on a $15K loan. My lawyer says not to sign a reaffirmation agreement - that likely they will not repo the car due considering I owe so little left and am still paying. The kelly blue book lists my car value at roughly $13k. I'm getting conflicting info as to what I really should do. Most advice i'm getting is to just stay put, keep making payments and not draw further attention to myself - which i'm told a reaffirmation would do.

My questions are: If I did sign the agreement - what happens if the courts deny it? Can the bank still repo my car if I continue to make timely payments? And lastly, once the car is paid off, how could I obtain the title - is that possible?


Asked on 2/05/09, 8:37 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Reaffirmation Agreement

If the court denies the reaff in a VA bankruptcy, the general rule is that the creditor cannot repo the car unless there is a default in payment or insurance, or another material non-bankruptcy term of the loan agreement. Once the car is paid off, you are entitled to get the lien released and get a clean title, whether or not you reaffirm.

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Answered on 2/05/09, 9:00 am


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