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Renegotiating loan terms before reaffirmation

I have a question about reaffirmation of a car loan in a Massachusetts Bankruptcy. Before I decide to reaffirm the loan and start making payments, can I try to renegotiate the amount of the loan or the interest rate? Is that legal or do I have to stick to the original terms? Thanks.

Negotiating before reaffirmation of car loan

First, you should know that, in Massachusetts, debtors do not typically reaffirm their car loan.   

However, if you decide that you want to, it certainly is not illegal to ask the creditor if they are willing to alter the terms of the loan before you sign a reaffirmation.  However, I cannot tell you how willing the creditor will be to work with you.  It probably depends on the facts of your situation and the creditor in questions.  It is always good to have a bankruptcy attorney help you in this situation, because it is not enough to check "reaffirm" on the bankruptcy Statement of Intention.  Reaffirmation agreements must be in writing, signed by you and the creditor.  It will later be approved by the bankruptcy court.  Some of these agreements can be several pages of legal lingo, so you should run it by your attorney.  Good luck.

 

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