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Valued Member
Posts: 39
Registered: ‎07-17-2012
0

Bankruptcy and car re affirmation

Ok here's my problem. I file bankruptcy in February. And supposedly I was able to re affirm my car loan and keep my car. Everything was going good and I have been on time every payment. Even got my score up to 592.

Now all of the sudden my fico alerts me that my score has dropped to 576! Because the car loan is being reported as discharged in the bankruptcy. Appearantly it was never reaffirmed and they have just been letting me keep the car because I'm in good standing.
But it's hurting my credit because I have no car loan being reported now.

So heres my question, do I let them have this car back and go get another car loan that will actually help my credit?

Is it going to hurt my credit anymore if I do give it up? Because its being reported as discharged in bank zero balance owed.

Please any advise is appreciated
Regular Contributor
Posts: 205
Registered: ‎08-29-2007
0

Re: Bankruptcy and car re affirmation

There should have been reaffirmation paperwork that you should have signed for the auto loan. Listing in the BK filing as a reaffirmation is not good enough. If you did sign the paperwork and they just have not corrected it yet, then I would get the paperwork and contact the BK department. I was in the same position and it took a couple of months for it to start reporting correctly. Your attorney would have had to contact them to get this accomplished beforehand.


Starting Score: TU 477 EQ 533 BK 1/27/2012
Current Score: EX 702 TU 681 EQ 652 1/10/2014
Goal Score: 700


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Valued Member
Posts: 39
Registered: ‎07-17-2012
0

Re: Bankruptcy and car re affirmation

Thanks that helps alot. I did sign the paperwork I remember for sure doing it that why I can't believe this is happening.

And a special thanks to myfico! I would have never even known this was going on without there alerting me of it
Community Leader
Super Contributor
Posts: 5,724
Registered: ‎03-06-2010
0

Re: Bankruptcy and car re affirmation


Freakshow77 wrote:
Thanks that helps alot. I did sign the paperwork I remember for sure doing it that why I can't believe this is happening.

And a special thanks to myfico! I would have never even known this was going on without there alerting me of it

The reaffirmation agreement has to be filed in your case prior to your discharge. Go to PACER dot gov and download a copy of your case to make sure the reaffirmation was actually filed with the court on time.

If it has been, then contact the creditor to have them correct the reporting to accurately reflect your payments. You may need your BK attorney to send the letter to the creditor if they don't respond to your request.

 

Not all lenders will report payments after you reaffirm. I reaffirmed a vehicle and the CU did report, but it is entirely dependant upon the individual lender.

Valued Member
Posts: 39
Registered: ‎07-17-2012
0

Re: Bankruptcy and car re affirmation

Ok so let me ask you this. Worst case scenario they didn't file my paperwork in time. So I'm stuck with a car loan for 2 more years that is not helping me?

Or does that mean since its reporting as discharged already then I'm not liable for it?
Because if it's not helping me what's the point?
If I let it go will it count as a repo on my credit?
Or do I need to keep it
Regular Contributor
Posts: 205
Registered: ‎08-29-2007
0

Re: Bankruptcy and car re affirmation

If the reaffirmation did not go through you are no longer liable for the vehicle and you will be able to let it go with no consequences. I do not believe you will have a repo becuase you are not liable for the debt anymore. I did the paperwork during my case but I remember after my creditor meeting signing a form from our auto and home lender.


Starting Score: TU 477 EQ 533 BK 1/27/2012
Current Score: EX 702 TU 681 EQ 652 1/10/2014
Goal Score: 700


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Contributor
Posts: 93
Registered: ‎06-26-2009
0

Re: Bankruptcy and car re affirmation

Is it free to sign up for PACER?  And which one should I sign up for?

Visitor
Posts: 3
Registered: ‎08-18-2012
0

Re: Bankruptcy and car re affirmation

I am currently going through a Chapter 7 and I was told not to sign a reaffirmation agreement since my car is leased. A reaffirmation agreement puts you in another contract with your car loan. They are now suppose to report your payments to the credit agencies, but if you do not keep your payments current, they can come take the car from you but you have no obligation after that. It all depends on what kind of loan that you have if the reaffirmation agreement is worth signing!

Regular Contributor
Posts: 205
Registered: ‎08-29-2007
0

Re: Bankruptcy and car re affirmation

That is true. Reaffirming your debt is typically something you should NOT do. We had less than a year of payments left and we were going to pay it off and keep it. That is why we did it, so why wanted to at least get credit for it, and it is reporting to all 3 CRA's.


Starting Score: TU 477 EQ 533 BK 1/27/2012
Current Score: EX 702 TU 681 EQ 652 1/10/2014
Goal Score: 700


Take the FICO Fitness Challenge
Community Leader
Super Contributor
Posts: 5,724
Registered: ‎03-06-2010
0

Re: Bankruptcy and car re affirmation


MyFico_704 wrote:

Is it free to sign up for PACER?  And which one should I sign up for?


I just saw this question - signing up is free but you have to pay 10 cents a page to download a document.

 

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