Check The Correct Box on the Statement of Intentions (Form 8)
A Sacramento bankruptcy attorney discusses foRM 8...
This entry will take a step by step approach on the reaffirmation process of a financed car in a Chapter 7 bankruptcy.
A Chapter 7 filer in their petition must indicate on the Statement of Intention (Form 8) they are going to reaffirm their vehicle by checking the box labeled reaffirm. They must also list the creditor holding title. This lienholder must also be listed in Schedule D – Secured Debts.
If the property securing the loan is personal property and an individual chapter 7 debtor fails to indicate in the statement that he or she either will redeem the property or enter into a reaffirmation agreement the automatic stay is automatically terminated and the property is no longer receives protection of the bankruptcy filing. The financing company may repossess without having to file any request with the bankruptcy court.
Stating ‘retain collateral and continue to make payments’ on a car is the equivalent of not stating any intention and protection will automatically lapse 30 days from the filing of the bankruptcy petition.
In conclusion make sure you check on the boxes on Form 8 with respect to your car. Never try to retain and pay if that’s your intent.
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