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Auto REEDEM during CH.7 is really an option??

Valued Member

Re: Auto REEDEM during CH.7 is really an option??

I spoke to 722 redemption my lawyer told me to call them.  The only issue right now is that my mom is a co-signer and she is not declaring BK therefore Ally Auto can hold her liable for the remaining amount. I am really pissed off. I still owe alot for a car that is worth very little. My only option I think is reaffirming the loan since I dont want her credit to be demaged. 

BK7 Filed 03/30/17
341 Meeting 05/03/17
Finally DISCHARGED!! 10/30/17

Cap One Plat CL $3000
Message 11 of 16
Established Contributor

Re: Auto REEDEM during CH.7 is really an option??

I wish i had more advice on this as my situation is very different i didnt have to worry about a co-signer so i do not know how it actually works in reference toa  co-signer but if i understand correctly if you reaffirm it does not matter your moms credit is still affected as the BK will still hit the TL even after reaffirming i read that it doesnt report each month after so same effect in my opinion why not go a head and get the best bang for your buck. I'm sure if you discuss it with her she will understand...

CH7 Filed (3/29/17) - 516 EQ, 517 TU, 483 EX -- Discharged (5/31/17) - 538 EQ 501 TU 559 EX
PenFed CLOC $500 - NFCU nRewards $1k - CreditOne $500 - VS $250 - Overstock $250 - KingSize $250 - Macys $5.8K (AU) - AmEx $1k (AU)
Message 12 of 16
Established Contributor

Re: Auto REEDEM during CH.7 is really an option??

My car was paid off so I don't have any first hand experience, but my intuition is telling me that a cosigner's credit would be affected if the finance company incurs any kind of loss whatsoever.

 

Reaffirm = no loss to the finance company - nothing for them to go after the coapplicant for

Redeem = loss to the finance company - I can't shake the notion that they will want to go after somebody and that it's going to of course be the cosigner

 

I think anyone in this situation should step very carefully and get such answers directly from their lawyer.

Ch 7 Discharge May 2015: EQ 588/TU 552/EX 570
Nov 2017: EQ 683/TU 660/EX 668 w/ 24% CC util reporting
Discover/Target/NFCU CLOC/NFCU Cash Rewards/PenFed Power Cash Rewards - $46k total revolving
Message 13 of 16
Valued Member

Re: Auto REEDEM during CH.7 is really an option??


SteelerNYC wrote:

My car was paid off so I don't have any first hand experience, but my intuition is telling me that a cosigner's credit would be affected if the finance company incurs any kind of loss whatsoever.

 

Reaffirm = no loss to the finance company - nothing for them to go after the coapplicant for

Redeem = loss to the finance company - I can't shake the notion that they will want to go after somebody and that it's going to of course be the cosigner

 

I think anyone in this situation should step very carefully and get such answers directly from their lawyer.


Yup after thinking and speaking to my lawyer. I'll be reaffirming the loan and just keep on paying. My mom has perfect credit and I do not want to screw that for her. 

BK7 Filed 03/30/17
341 Meeting 05/03/17
Finally DISCHARGED!! 10/30/17

Cap One Plat CL $3000
Message 14 of 16
Established Member

Re: Auto REEDEM during CH.7 is really an option??

I was in the same position but i wasn't that far upside down and when I spoke to the guy from 722 redemption he basically told me the same thing that there is a possibillity the current lender would come after the co-signer to collect remaining balance so I just reaffirmed the loan and figured when i get my bonus i'll just pay a huge chunk down or try and refinance later

Starting Score: TU-593, EQ-540, EX-613
Current Score (5/1/2017): TU-600, EQ-615, EX-609
Goal Score: 700's


BK7-1/17/2017
BK7 Discharge-5/1/2017
Message 15 of 16
Member

Re: Auto REEDEM during CH.7 is really an option??

So of you offer full market value do they have to take it? I wonder what the success rate is? Because isn't it ultimately up to a judge or trustee??
Message 16 of 16