Expert: Terry Leeders - 4/25/2011

Question
I had by Bankruptcy discharged in 2004. At which time a reaffirmed on my house and a vehicle. I have made all payments on both to today. I was just told that the Bank for the vehicle shows that the boat was discharged in and that I never reaffirmed. What would happen I just stopped making payments? Would this further damage my credit?

Answer
If you signed the reaffirmation agreement and it was filed with the court, then you are on the hook for the payments.  If you don't pay, they can repossess, sell the asset, then pursue you for the difference, if any, that is still owed.

If you did not sign the reaffirmation, or if it wasn't filed with the court on time, then the debt is discharged in the bankruptcy case.  The lender would have the right to take back the asset if you do not pay, but they cannot collect any further money from you.

Thanks for your question, good luck.