Reaffirmation Hearings: An overview of the possible outcomes and what it means for you. This is where the question of confirmation becomes tricky. In New Jersey, there is no passage for car loans, that is, if you do not file the confirmation agreement, the creditor could theoretically come and take the car. However, this does not mean that a submitted confirmation agreement must be “approved” in order to keep the car. First, lenders want you to sign them and get them approved by the judge. This should give you a break there. It`s rare for creditors to do something they think will benefit you. A creditor who has a lien on your vehicle wants you to sign a stand-by agreement because it gives them the opportunity to sue you in person if you default in the future. In the past, a debtor could simply continue to pay for the vehicle. If for some reason they could not keep the payments, they could lose the car, but the creditor could not sue for the default (the difference between what was due on the loan and the amount for which they could sell the car after putting it back into possession, plus the fees, storage, etc., etc.).
If you are not yet in bankruptcy proceedings, but a lawyer mentioned new declaration agreements to you during a telephone consultation, you may be wondering what they are. In Arizona, however, several judges have begun to take a closer look at these agreements. Although a bit technical and confusing to explain, the position of these judges is often as follows: 1. The debtor tried in good faith to confirm guilt, he signed the agreement, appeared at a hearing, stayed informed of the payments of his car after declared bankruptcy, BUT.. 2. I agree that the approval of the confirmation agreement constitutes an unreasonable constraint on the debtor because (a. the interest rate is too high, b. the debtor is upside down on the vehicle, c. making the payments does not appear to be in the best interest of the debtor given his income and expenses, that is, the creditor has not lowered the interest rate or the amount of the principal or extended the term. . . ) You get the idea.
Then, the judge often issues an order rejecting the stand-by agreement, while entering an order that prevents the creditor from accepting the vehicle again as long as the debtor remains up to date. If they do not stay up to date, the creditor can support the car again, but the debtor does not have personal responsibility for the defect that is likely to occur after the creditor has sold the vehicle. .