What Happens To A Customer's Loan When They Declare Bankruptcy?
Updated
Once a bankruptcy is confirmed, any loans included in the bankruptcy are charged-off. Therefore, no further action is needed or can be taken on a customer’s Affirm account regarding either of these loans.
The loans remain visible on the customer’s Affirm account for informational purposes only.
Additionally, Affirm cannot request that customers make payments or accept payments while a bankruptcy is pending. As such, communications regarding their loans will cease.
Once the customer’s bankruptcy proceeding is completed, loans that were included in the bankruptcy will be updated as appropriate to reflect any change in status required.
Customers with recent bankruptcies are generally not able to be approved for an Affirm loan.
