After Bankruptcy Plan Ally Financial

[lphillips]

Sorry  for confusion DaveinAZ, there are two post one from someone dealing with Ally Financial and then my post dealing with Honda. I actually have a 2012 Honda Accord.

[lphillips]

Yes, I am actually making payment today to bring current. My attorney is filing my case tomorrow...

[DaveInAZ]

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@lphillips wrote:

This may not be the area to post but I am going to do anyways. So what I am understanding after reading several different threads is, it is not a good idea to reaffirm a car, especially if there is no equity. Just continue to make the payments because:

1. They may not continue to report, which doesn't help you build.

2. It still holds you accountable for the debt even after the bankruptcy

- I called Honda Financial, (which since July has been late 30-60 days but before that time a perfect payment history (for the past 2 years), they said if my car note is 30 days behind when my bakruptcy is filed, they will file a motion to release the stay to try and get the vehicle back

- They also stated that if I reaffirm and I become 30 days behind at any given time they would repo the car.

- I owe 25K on the car with three years left to pay - KBB value is $13,339

What advice would one have at this point? I need my vehicle to get back and forth to work and I also have 3 children that need to go to school

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Sorry, confused your post w/ the OP.

Well, if you owe $25k & KBB value is $13.3k, no brainer, let it go. But you'll obviously need a car. Can you catch payments up before filing? Kinda throwing $$ away, but if current when you file they probably won't get the motion to release stay & will have to wait untill discharge. After discharge you can probly get a loan for a new (to you) car. INterest rate will be high, but make all payments on time & you can refinace or get decent loan for another car within a year.

[0REDSOX7]

What did you put on your statement of intentions in your petition?

[lphillips]

No problem, that's my plan....this is all so nerve wrecking😨

[lphillips]

I have no idea I just know I included everything... Including car, my lawyer talked about I wouldn't have any problems reaffirming with Honda, but after reading several threads in this forum...I expressed to her my concerns....that's why I came back here today for seeking confirmation to my thoughts and received great feedback

[DaveInAZ]

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@lphillips wrote:
I have no idea I just know I included everything... Including car, my lawyer talked about I wouldn't have any problems reaffirming with Honda, but after reading several threads in this forum...I expressed to her my concerns....that's why I came back here today for seeking confirmation to my thoughts and received great feedback

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On your BK filing you have to indicate your intentions with all secured debt - Reaffirm, Redeem (pay lump sum), or Surrendered. What you state as you intention does not obligate you to follow through with that. So you should check w/attorney before filing. I'd recommend stating you intend to reaffirm to keep them at bay. But again, no obligation to do that - I filed with intention to reaffirm my mortgage and then my attorney screwed up & didn't even tell me about the reaffirmation agreement the mortgage bank sent, and mortgage was discharged,

[lphillips]

Great advice, I will check with her today....

[0REDSOX7]

Don't forget option number four - the ride through option.

This allows you to pay without reaffirming and you get to keep your car so long as you aren't late.  This is what we did.

Whatever you put on your statement of intentions is just a statement, it's not the full reaffirmation agreement - that is separate and requires a separate hearing in front of the judge/trustee.  Again, if you're upside down that much, do not reaffirm.

[MB2714]

In My Filing I stated my intetion with Ally was to reaffirm, but i may change my mind by the time my 341 meeting comes around