A Creditor Challenge to the Automatic Stay
Filing bankruptcy stops creditors' collections against you immediately. But sometimes a creditor tries to get permission to collect anyway.
Examples of Reaffirmation Agreement vs. Chapter 13
Here are examples of the reaffirmation of a secured debt (like a vehicle loan) in a Chapter 7 case vs. addressing it in a Chapter 13 case.
A Debt Reaffirmed under Chapter 7
You can usually keep collateral you need to keep by entering into a "reaffirmation agreement" with the creditor during your Chapter 7 case.
The Automatic Stay in Chapter 7 and 13
Filing a Chapter 7 or 13 case both stop creditor collection actions against you just the same. But after that the differences are huge.
Chapter 7 Buys Time to Redeem Your Vehicle
If your vehicle is worth less than its debt, and you can get the money representing that value, you can "redeem" the vehicle free and clear.
Reducing the Cost of Your Vehicle Loan through Cramdown
Chapter 13 vehicle loan cramdown solves a number of serious practical problems that even Chapter 7 "straight bankruptcy" can't.
Keeping Your Vehicle in Chapter 7 through Redemption
If your vehicle is worth less than you owe on it, under Chapter 7 you can keep it by "redeeming" it--paying its present value in full.
Keeping Your Vehicle by Reaffirming the Vehicle Loan
In a Chapter 7 case you "reaffirm" your vehicle loan if you want to keep your vehicle. This means you keep paying it.
“Assuming” a Vehicle Lease in Default in Chapter 13
Although Chapter 7 can work fine if you're current on your lease, use Chapter 13 instead if you're behind and need time to catch up.
Secured Creditors’ Proofs of Claim in Chapter 13
If you want secured creditors to be paid in your Chapter 13 plan, they must file proofs of claim. Let's use the example of a vehicle loan.
Surrendering a Vehicle in a Chapter 13 Case
Chapter 13 gives you powerful ways to hold onto a vehicle, but it also lets you give up that vehicle without paying its debt.
Getting Out of Your Vehicle Lease through Chapter 7
A vehicle lease can cost you less up-front and each month, but is in reality very expensive. Bankruptcy is your way to break the contract.
Reaffirming Your Vehicle Loan through Chapter 7 Bankruptcy
A reaffirmation agreement is a document, usually prepared by your vehicle lender, which you sign and is then filed at the bankruptcy court.
A Fresh Start on Your Vehicle Loan through Chapter 7 “Redemption”
You may be able to keep your vehicle for less money by "redeeming" itâpaying its present fair market value instead of the full debt.
A Fresh Start on Your Vehicle Loan through Chapter 7 “Reaffirmation”
A reaffirmation agreement makes you still liable on your vehicle loan so you can keep your car or truck after writing off your other debts.
