Can a Creditor be forced into a reaffirmation?
No, a Creditor can’t be forced into a reaffirmation. Can a Creditor be forced into redemption (a lump sum payment for fair-market value)? Yes, a Creditor can be forced into redemption. A reaffirmation is an agreement to pay the payments on the loan, and it is very rare for the Creditor to refuse a reaffirmation. If the bank does not agree to a reaffirmation, it will usually take a large loss from selling the vehicle at an auction, or the house in a foreclosure. It may even violate federal lending rules by refusing to reaffirm on a home mortgage. A bank may be able foreclose or repossess, regardless of whether you are in a bankruptcy. If they have started a foreclosure, the filing of the bankruptcy stops the foreclosure but, in a Chapter 7, the bank may file a motion with the Bankruptcy Court and ask to foreclose anyway. If a Chapter 13 offers a good repayment plan, the Court will not approve any foreclosure. If the bank is adamant that it wants the house or car back, it may do so in a
