Can the loan company call in the loan and make the whole loan due immediately? 14 Answers as of October 17, 2013

I file for bankruptcy, and re-affirm my truck loan, which is current on payments. I owe $21,000 on the truck yet.

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
No, they can not call the loan all due.
Answer Applies to: California
Replied: 10/17/2013
Michael B. McFarland, P.A. | Michael B. McFarland
If you are current on payments when you file a Chapter 7 bankruptcy, you generally have the option of reaffirming the debt and continuing to make your payments, but why would you want to? Unless the truck is a semi, used for generating income, it makes little sense to stay tied to such an expensive truck or any personal vehicle, for that matter. There are plenty of reliable vehicles that can be had for two or three-thousand dollars. If you have equity in the vehicle, you could sell it and use the funds you net to pay cash for something inexpensive, make car payments to your savings account, and then pay cash for something nicer as you are able. If you have no equity, or are upside-down, you should surrender it in a Chapter 7. If you really need it, and are upside-down, or paying a high interest rate, consider a Chapter 13, where you can adjust the value to what it's worth, at market interest. Before deciding, you should consult with an experienced bankruptcy attorney to get a handle on your options.
Answer Applies to: Idaho
Replied: 10/15/2013
Stephens Gourley & Bywater | David A. Stephens
If you reaffirmed the loan, the company cannot call the loan unless you fall behind on payments.
Answer Applies to: Nevada
Replied: 10/11/2013
Law Offices of Linda Rose Fessler | Linda Fessler
If you reaffirmed, and they agreed to the reaffirmation, they will not ask for the whole amount. Of course, I do not know why you would reaffirm. The truck is probably not worth what you owe, and if you default on it after the bankruptcy, they will take the truck and you will owe them the balance. If you do not reaffirm they will take the truck but you will not owe them anything assuming it is a Chapter 7 and you list how much you owe them on the bankruptcy papers.
Answer Applies to: California
Replied: 10/10/2013
Law Office of Jeffrey Solomon
Law Office of Jeffrey Solomon | Jeffrey Solomon
When you reaffirm a motor vehicle loan in bankruptcy it is as if you had not filed bankruptcy on that loan. You would continue to make your monthly payments. Your lender cannot accelerate or call the full balance of the loan. You can continue to pay on the original terms of the loan.
Answer Applies to: Florida
Replied: 10/10/2013
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    If you reaffirm the loan with the same terms of the original loan, it means the terms of the original loan stay in place and the bankruptcy leave them unaffected. As long as you keep the payments current and pay the payments in accordance with the terms of the loan agreement, then the lender has no legal right to call the loan due or repossess.
    Answer Applies to: California
    Replied: 10/10/2013
    Law Offices of David A. Tilem | Michael Avanesian
    It all depends on the underlying facts but if the bankruptcy was the reason for the default, then they generally cannot do that.
    Answer Applies to: California
    Replied: 10/10/2013
    Rhymer Law Firm
    Rhymer Law Firm | William Rhymer
    If you timely signed and filed a Reaffirmation Agreement in your case, then the finance company can only accelerate the debt if you violate the terms of the Reaffirmation Agreement after the agreement is filed.
    Answer Applies to: Georgia
    Replied: 10/10/2013
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    If you reaffirmed it and are current, why would they repo the vehicle?
    Answer Applies to: New York
    Replied: 10/10/2013
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    What are the terms of the reaffirmation agreement? When you reaffirm a debt, the terms of this new agreement control how you must pay this debt.
    Answer Applies to: Nevada
    Replied: 10/10/2013
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    No, your truck loan is current therefore you do not even need to sign a reaffirmation agreement. You just keep making a regular payment.
    Answer Applies to: Nevada
    Replied: 10/10/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    First of all, I'm not sure reaffirming a loan with that large a balance makes good sense. Second of all, if you reaffirm the loan then the terms of the loan become legally enforceable so you must look to your loan papers to determine when an if the lender can accelerate the loan and call the entire amount due.
    Answer Applies to: Colorado
    Replied: 10/10/2013
    Elkington Law
    Elkington Law | Sally Elkington
    I can't see any reason that your loan can be called. You are, in fact, reaffirming terms of that loan, which binds you AND THE LENDER. Stay current and keep your vehicle insurance up and you should be fine.
    Answer Applies to: California
    Replied: 10/10/2013
    Law Office of Louis S. Haskell
    Law Office of Louis S. Haskell | Louis Haskell
    In Massachusetts, the bank cannot repo a vehicle if the payments are current, even if the loan was discharged in Bankruptcy. This is why our local Judges will not approve a reaffirmation of a car loan. They say it is not in the Debtor's interest to do so.
    Answer Applies to: Massachusetts
    Replied: 10/10/2013
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