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What happens if I don't reaffirm my car loan after a repo?

I was told by a friend that I should reaffirm my car loan since I'm in bankruptcy proceedings. Is a reaffirmation agreement really necessary?

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Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
While bankruptcy proceedings are certainly stressful, don’t fret too much. Even if you don’t reaffirm your
car loan
after a repo, many lenders will continue to do business with you.
The reason that lenders will still work with you even if you don’t reaffirm your loan is because they assume that if you keep making payments, they’ll make more than they would by repossessing the car and selling it at auction.
However, you will want to consult your bankruptcy attorney to make sure that not reaffirming your car loan is the best move for your specific situation.
To save on other car expenses and put more money toward your loan, download the
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