How Do I Reaffirm My Car Loan?

Written by Kristin Turner, Harvard Law Grad. Legally reviewed by Attorney Andrea Wimmer
Updated August 11, 2020

Reaffirming your car loan is a 6 step process:

(1) Tell the Bankruptcy Court that you want to reaffirm the debt. You do that by selecting the “reaffirmation” box for your debt on Official Form 108 (Statement of Intention).  Upsolve's free web app will help you prepare this form.

(2) After filing your bankruptcy forms, you must mail the Statement of Intention form to your car lender. You should also call your lender and speak with the bankruptcy department.  Ask them to send you a reaffirmation agreement. 

(3) Receive, review, complete and sign the reaffirmation agreement, then send it back to the lender. You must sign and deliver your reaffirmation agreement to the lender within 45 days after your Meeting of Creditors. If you don't, the lender will be able to repossess the vehicle even without first asking the court for permission or giving you any prior notice.

(4) The lender will then file the signed reaffirmation agreement with the court.

(5) If you don't have a lawyer, or your lawyer hasn't certified the reaffirmation agreement, the bankruptcy court will hold a brief hearing to make sure that reaffirming is in your best interest.  You will need to attend.

(6) The court either approves your reaffirmation agreement, or not. Typically, either way, as long as you're current with payments and the vehicle is insured, you'll be able to keep the vehicle. If the reaffirmation agreement is not approved, the lender can repossess the car if you default, but that's it. If the reaffirmation agreement is approved, they can also sue you for the deficiency balance still owed after the car is sold at auction.

Written By:

Kristin Turner, Harvard Law Grad

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Kristin is a recipient of Harvard Law School’s Public Welfare Foundation A2J Tech Fellowship. At Harvard Law, she served as a member of the Harvard Defenders, the Women’s Law Association, and the Harvard Law Negotiation Review. She was the 2016 – 2017 president of the Harvard Bla... read more about Kristin Turner, Harvard Law Grad

Attorney Andrea Wimmer

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Andrea practiced exclusively as a bankruptcy attorney in consumer Chapter 7 and Chapter 13 cases for more than 10 years before joining Upsolve, first as a contributing writer and editor and ultimately joining the team as Managing Editor. While in private practice, Andrea handled... read more about Attorney Andrea Wimmer

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