Expert: Terry Leeders - 4/16/2008

Question
We filed bankruptcy in 06 and asked to reaffirm on our cars.  The lenders sent us reaffirmation agreements but due to some discrepancies in the amounts, we did not sign them.  We have always made the payments on the cars and continue to do so.  What I need to know is if we did not sign reaffirmation agreements and continue to make the payments, can the banks still come take the cars?  If so, is there something that I can request from the companies that will secure our interest in the cars again so that they cannot come and take them?


Answer
Technically, yes, they can take the cars since you did not reaffirm the debt.  In reality, they usually will let you keep the vehicles if you stay current on the note.  They only way to 'protect' yourself is to refinance the car with another lender, then you would have to stay current on those terms.
Now that it is 2008, if they haven't taken the cars, doubtful they will.  Stay current and you should be ok.