What happens if you stop making payments on a reaffirmed RV loan that was reaffirmed during a chapter 13? 19 Answers as of April 09, 2014

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EDWARD P RUSSELL | EDWARD P RUSSELL
A reaffirmation agreement is used in a Chapter 7 not a Chapter 13. I assume that that secured debt debt is not being paid under para. 8 of the plan but that you are paying outside the plan. If you do make payments the creditor can obtain a relief from stay from the court and repossess the vehicle.
Answer Applies to: Minnesota
Replied: 4/9/2014
A Fresh Start
A Fresh Start | Dorothy G Bunce
When you reaffirm a debt, it is as if you never filed bankruptcy. So if you stop paying, the lender can repo the property and sue you for any deficiency (the difference between the balance owed and the sale price at the wholesale dealers action).
Answer Applies to: Nevada
Replied: 4/2/2014
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
There are no reaffirmations in Chapter 13.
Answer Applies to: Indiana
Replied: 4/2/2014
Stephens Gourley & Bywater | David A. Stephens
That depends on whether it was reaffirmed or just made part of the plan. If it is just part of the plan, the lender can get court permission to repossess and sell the RV and then seek to file a claim for the deficiency.
Answer Applies to: Nevada
Replied: 4/2/2014
Ronald K. Nims LLC | Ronald K. Nims
There is no such thing as a reaffirmation in a Chapter 13, reaffirmation is a part of a Chapter 7 bankruptcy. If the bankruptcy is closed and you have failed to make payments under a reaffirmation agreement, the creditor can repossess the property and sue you for the difference if they don't sale the RV for the full amount of the loan.
Answer Applies to: Ohio
Replied: 4/2/2014
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    If the Reaffirmation Agreement was approved by the Court, and sixty days have elapsed since the Court signed the Order approving same, you can be liable on this debt. The RV Lienholder can repossess the RV, sell it, and hold you liable for the difference. If you are still in the Chapter 13, you can look at either converting your case to a Chapter 7, or letting this case get dismissed and refile another BK (7 or 13, depending on your circumstances). You may also consider doing a Post Confirmation Modification. Speak to your attorney about all these options. Good luck!
    Answer Applies to: Colorado
    Replied: 4/2/2014
    Patrick W. Currin, Attorney at Law | Patrick Currin
    You risk repossession and a deficiency if your case is closed. You may be able to amend your schedules to include personal responsibility if your case is on-going.
    Answer Applies to: California
    Replied: 4/2/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You need to file a motion to set aside the reaffirmation or you will be liable to the creditor for all payments.
    Answer Applies to: Nevada
    Replied: 4/2/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    You will be hit with a deficiency balance when it is sold at auction.
    Answer Applies to: California
    Replied: 4/2/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    The lender can repossess the vehicle and put a judgment against you.
    Answer Applies to: New York
    Replied: 4/2/2014
    Law Offices of Linda Rose Fessler | Linda Fessler
    If you reaffirmed, you are stuck with it and with any deficiency if they repossess it and sell it.
    Answer Applies to: California
    Replied: 4/1/2014
    Law Office of Shawn N. Wright | Shawn N. Wright
    I think that you are confused between Chapter 7 and Chapter 13. You do not reaffirm loans during or after a Chapter 13 case. The reaffirmation process only applies to Chapter 7 cases. Lets say however that you reaffirmed an RV loan through a Chapter 7, and you stop making payments. The bank has a right to repossess the RV and force you to repay the deficiency on the loan. The bank will likely sell the RV. So, for example, let's say that you owe $20,000 on the RV loan. The bank repossesses it and then sell it at an auction for $5,000. The bank will then sue you for the balance, which is $15,000. Remember if you reaffirm a secured loan, such as this one, you are still on the hook personally for any payments on the loan. It's as if the bankruptcy was never filed as to that reaffirmed loan.
    Answer Applies to: Pennsylvania
    Replied: 4/1/2014
    Mauritz Van Niekerk, Attorneys at Law
    Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
    That will be a new non dischargeable debt.
    Answer Applies to: New York
    Replied: 4/1/2014
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    It will be repossessed assuming that you still owe money on it and you will be responsible for deficiency in price when it is sold. If you are still in Ch. 13 (haven't been discharged), ask you attorney to modify your plan to allow you to give it back to the lender. Good Luck!
    Answer Applies to: Michigan
    Replied: 4/1/2014
    Tokarska Law Center
    Tokarska Law Center | Kathryn U. Tokarska
    That is strange. I haven't done any reaffirmation agreements in a chapter 13. Are you sure you reaffirmed and you are talking about a chapter 13, not chapter 7?
    Answer Applies to: California
    Replied: 4/1/2014
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    You don't usually "reaffirm" in a Chapter 13 case. That concept is only applicable to Chapter 7. However, if the chapter 13 case is now completed and you still have a balance on the RV, it is possible that you still have the liability and stopping the payments would likely mean you will still be liable. However, if the Chapter 13 case is still going, you can change your plan to give up the RV instead.
    Answer Applies to: California
    Replied: 4/1/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    If your chapter 13 was discharge then you will be stuck with the debt. If your chapter 13 is still active, you might consult with your attorney to rescind the reaffirmation agreement. Rescission is only available until you receive your discharge.
    Answer Applies to: Indiana
    Replied: 4/1/2014
    Portland Bankruptcy Law Group
    Portland Bankruptcy Law Group | Christopher J. Kane
    If you reaffirm a secured debt, such as an RV loan, in a bankruptcy, and miss a payment after the bankruptcy is finished, the lender retains their lien and they have the right to repossess the collateral. And, since you reaffirmed the debt, you will remain liable on the deficiency balance after the collateral is sold. If the lender wants to repossess while you are still in bankruptcy, they first have to obtain an order giving them relief from the automatic bankruptcy stay before they can repossess.
    Answer Applies to: Oregon
    Replied: 4/1/2014
    Havkin & Shrago | Stella Havkin
    RV Loans are not reaffirmed in a chapter 13 only in a chapter 7.
    Answer Applies to: California
    Replied: 4/1/2014
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