North Highlands, CA Bankruptcy Law Firms & Lawyers

When a car is repossessed, it is usually sold at a dealer's auction at a give away price. The lender then has the right to sue you for what is called a deficiency, which is the difference between the sale price and the balance you owe on the loan. Often this will be thousands of dollars or even tens of thousands of dollars. This is the kind of debt that CAN be discharged in a bankruptcy, but I hate to recommend bankruptcy when you only have one debt.

If you don't reaffirm your mortgage in bankruptcy the lender still retains its security interest. As long as you continue paying the loan nothing will change. If you default on the payments the lender can foreclose, but the bankruptcy discharge means you will have no personal liability for any debt owed on the property to the lender. The difference with a formal, approved written reaffirmation is that a lender can pursue you for a deficiency judgment after foreclosure. It is almost never advisable to reaffirm a mortgage therefore. This is a complicated issue and you should seek the advice of an attorney who is a certified specialist in bankruptcy law. Consult the State Bar website for a listing of those attorneys in your area.

Not if you complete your Chapter 13 plan successfully and receive your discharge. Besides, the bank should not be calling you if you already have an active Chapter 13 case, unless you're trying to represent yourself. If you are trying to represent yourself, you should not do it.