Filed for bankruptcy and was discharged in Nov 2021. Signed a reaffirmation but now the bank’s saying my account is closed and I’m not liable if I surrender my vehicle. But, can they come after me later? I have calls recorded with them confirming I’m not liable.
That’s a tricky situation. Have you got anything in writing from the bank about your non-liability?
Winter said:
That’s a tricky situation. Have you got anything in writing from the bank about your non-liability?
No written confirmation yet, just the phone calls. I’m worried they might flip on their word.
@Cleo
Definitely try to get something in writing. Phone calls are helpful but written proof is always best in legal matters.
Have you talked to a bankruptcy attorney about this? They might give you better guidance considering your reaffirmation agreement.
Milo said:
Have you talked to a bankruptcy attorney about this? They might give you better guidance considering your reaffirmation agreement.
Not yet, planning to chat online with one soon. Hope they can clarify things.
That reaffirmation complicates things. Usually, it means you agreed to remain liable for the debt despite bankruptcy. Be careful.
Peyton said:
That reaffirmation complicates things. Usually, it means you agreed to remain liable for the debt despite bankruptcy. Be careful.
Exactly! Reaffirmation agreements generally mean you can’t just walk away without any consequences, even if they told you otherwise on the phone.
I heard sometimes these banks record calls for quality assurance but not all are kept. Make sure those recordings are stored somewhere safe!
Lane said:
I heard sometimes these banks record calls for quality assurance but not all are kept. Make sure those recordings are stored somewhere safe!
Good point, always back up important calls especially when it’s legal matters. Never know when you’ll need them.
Is there a chance they could still sue for a deficiency if the sale doesn’t cover the full amount you owe?
Skyler said:
Is there a chance they could still sue for a deficiency if the sale doesn’t cover the full amount you owe?
Yes, unfortunately, if the vehicle sells for less than the loan amount, the reaffirmation could allow them to pursue the remaining balance.
@Dru
That’s harsh but true. Best to get ahead of this by consulting with a lawyer to understand all possible outcomes.