Effective January 1^st, 2023 the need for reaffirming an auto loan is eliminated by SB 1099. Previously, a lender could have considered a debtor in default simply by their filing a bankruptcy, regardless of whether they were current on the payments. The passage of SB 1099 eliminates the auto lender’s ability to treat the act of filing a bankruptcy as a breach of the loan agreement.

Many lenders have been attempting to force the debtor into a reaffirmation agreement that waives the debtor’s right to the discharge when it comes to their auto loan in order to keep their vehicle. This is no longer the case. What this means for the debtor, is that they get to retain their vehicle as long as they keep up on the payments.

For more information, contact your Yuba City bankruptcy attorney at 530-797-4402.

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