Sunday, January 15, 2017

Bad Credit Auto Financing: Benefits of Reaffirmation in Bankruptcy

Filing a Chapter 7 bankruptcy doesn’t mean that you’d lose your car forever. While this type of bankruptcy gives companies and lenders the right to repossess your properties, such as a house or a car, you can keep your vehicle through a reaffirmation agreement.

A Chapter 7 bankruptcy removes your personal liability over dischargeable debts; however, the bankruptcy doesn’t affect the security interest your car lender set. This means that the lender can repossess your car, but they won’t be able to take you to court to force you to settle the balance. This is why lenders often require you to sign a reaffirmation agreement if you wish to keep the car even after the bankruptcy. 

This agreement establishes a new contract between you and the lender that offers auto loans for bad credit. This makes you personally liable on the loan again. Reaffirmation agreement has several benefits. Head on over to DicksHillsboroHyundai.com blog page to know more. http://bit.ly/2jxD5dt

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