Reaffirmation agreements · Beverly Hills
Reaffirmation Agreements in Beverly Hills: Keep Your Car the Right Way
Reaffirmation agreements in Beverly Hills let you keep a financed car or other property after Chapter 7 by agreeing to keep paying the loan. Because signing means you owe the debt again, call (310) 362-9071 before you sign anything your lender sends.
- Must be signed and filed before your discharge
- You can cancel within a set time after filing
- Your budget must support the payment
- It is never required by law
When a reaffirmation agreement comes up
In Chapter 7, you must tell the court within 30 days of filing whether you will keep or surrender property that secures a loan. To keep a car, many lenders ask you to sign a reaffirmation agreement.
- You have a car loan and want to keep the car
- Your lender mailed you a reaffirmation agreement
- You are behind on the loan or the car is worth less than you owe
- You financed furniture or electronics through a store
How we review a reaffirmation, step by step
- Read the terms. We check the balance, interest rate and payment against your loan.
- Compare to the car's value. Reaffirming a loan far larger than the car is worth is often a bad deal.
- Check your budget. If your budget shows you cannot afford the payment, the law presumes undue hardship and the court must review it.
- Look at alternatives. You may be able to redeem the car by paying its value in a lump sum, or surrender it and buy a cheaper car.
- File on time. If signing makes sense, we file the agreement before your discharge and appear at any hearing.
Cost and timeline
Reviewing a reaffirmation agreement is part of your Chapter 7 case under our flat fee, which starts at $1,200 plus the court filing fee.
The agreement must be filed before the discharge, usually within about 60 days after the 341 meeting. You can cancel it within 60 days after it is filed or before discharge, whichever is later.
Reaffirmation in the Los Angeles Division
Chapter 7 cases from Beverly Hills and most of Los Angeles County are in the Los Angeles Division of the U.S. Bankruptcy Court, Central District of California, at 255 East Temple Street. When an agreement shows a budget shortfall, or when you do not have a lawyer sign it, the judge may set a hearing before approving it.
Some lenders let borrowers keep a car without reaffirming, as long as payments stay current. Others repossess after discharge. We check how your lender usually handles it.
Mistakes to avoid
- Signing what the lender sends without review. You give up the discharge for that debt.
- Reaffirming a deeply underwater loan. If the car is totaled or repossessed later, you owe the full balance.
- Missing the filing deadline. After discharge, it is usually too late.
- Reaffirming unsecured debt. Credit card companies sometimes ask. There is rarely a good reason to agree.
Related services
If the car has already been taken, see our car repossession help in Beverly Hills. After your case, learn about rebuilding credit after bankruptcy.
More on Chapter 7 bankruptcy
- Chapter 7 bankruptcy in Beverly Hills
- California Median Income Figures for the Means Test
- What Debts Are Wiped Out in Chapter 7
- Debts Chapter 7 Will Not Discharge
- Can I Keep My Car in Chapter 7?
- Can I Keep My House in Chapter 7?
- The Chapter 7 Timeline, From Filing to Discharge
- What the Chapter 7 Trustee Looks For
- Filing Chapter 7 With No Income or Between Jobs
- Filing a Second Chapter 7: The Eight-Year Rule
- Chapter 7 for Married Couples: Filing Alone or Together
- What Happens at the 341 Meeting of Creditors
- Redeeming a Car in Chapter 7
- Means test evaluation
- Reaffirmation agreements
Reaffirmation questions
Do I have to sign a reaffirmation agreement to keep my car?
No, you are never required by law to sign a reaffirmation agreement. But if you want to keep the car and the lender insists, signing may be the only way to keep it. We weigh that with you.
Can I cancel a reaffirmation agreement?
Yes, you can cancel a reaffirmation agreement within 60 days after it is filed or before your discharge, whichever is later. Cancel in writing to the lender.
Does reaffirming help my credit?
Reaffirming may help your credit if the lender reports your payments after the case. Not all lenders report reaffirmed loans, so ask before relying on it.
What happens if I default after reaffirming?
If you default after reaffirming, the lender can repossess and sue you for any balance left after the sale, as if you never filed bankruptcy for that loan.
Free consultation
Review the agreement before you sign
Call (310) 362-9071 or send the form. Have the reaffirmation agreement and your loan statement ready.
Law Offices of John Asuncion9454 Wilshire Blvd., Penthouse Floor
Beverly Hills, CA 90212
(310) 362-9071
Monday to Friday, 9 a.m. to 6 p.m.