If I don't reaffirm, but stay current, can state law prevent lender from taking my car? 5 Answers as of August 15, 2011

I read a blog this morning that in CT, even if bankruptcy filers don't reaffirm their debt, the state law disallows repossession so long as the buyer stays current on payment/insurance. Is this true in any other state? I live in CA.

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
I believe it is true, but that issue has not reached the appellate courts. The legal issue would be whether or not filing bankruptcy was a "material default." The courts migh rule that it is, which would mean the car companies could repossess the car despite the fact that you are current. Unless you want to fund an appeal on the issue I would file the reaffirmation agreement.
Answer Applies to: California
Replied: 8/15/2011
Lake Forest Bankruptcy
Lake Forest Bankruptcy | Anerio V. Altman, Esq.
In CA, the lender can repo post-Bankruptcy even if current. However, unless it is Ford, most lenders don't do that.
Answer Applies to: California
Replied: 8/15/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
The law in California in the absence of a written reaffirmation agreement does not allow what is called "pay and drive." Even if you are current in payments and insurance the lender can repossess, although they don't typically do so. Some lenders, however, routinely repossess in this situation.
Answer Applies to: California
Replied: 8/15/2011
Bird & VanDyke, Inc.
Bird & VanDyke, Inc. | David VanDyke
In CA the lender can repossess your car if you have not reaffirmed the debt. Most car lenders will not do this but they can. Best to work this out with them prior to your case closing.
Answer Applies to: California
Replied: 8/15/2011
Ursula G. Barrios Law
Ursula G. Barrios Law | Guillermo Machado
No. New laws give lenders more power to enforce reaff.
Answer Applies to: California
Replied: 8/14/2011
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