Bankruptcy

[Whew]

Hello.  I have a question.  I am waiting for my Chap 7 to be discharged.  I am trying to do a reaffirmation agreement with my lender for my car.  They would like for me to continue making payments using my old contract.  My lawyer feels I should hand over the car and get a new one. 

I don't know how simple it will be to get aother car.  Does anyone have any suggestions?

Thank you

Tonya

[gdtobefree]

I sure would like to know HOW you get a new anything right after discharge, other then have a HUGE downpayment I don't see how you can.

I went through chap 7 and it took me 5 yrs and a co signer to get a USED car.

DH went through chap 7 dec 07 and was told the same thing, after what I went through I told him if he gave the car back I would divorce him, he kept it, we reaffirmed no problems.

The only bad thing about reaffirming a auto loan is that you keep the credit history reported, if you have lates they go along with the reaffirmation, BUT you can always GW them into removing those lates.

DH's lawyer told him not to pay a thing including the truck note which we were not behind on when we filed because Chase might not want to reaffirm before discharge and the money we paid would have been lost, dummy us listened and now we have the late payment history to boot.

If you weren't late on it and it isn't a bomb that needs to be repaired or is in good working condition I would keep it.

[Whew]

We did the same thing.  We were told not to pay anything over 300.  Now the 7 is done with and we want to reaffirm.  The lender's attorney wants us to make up the back payments within 2 months and keep the same terms.  We are offering to keep the same terms but we want to discharge the back payments in the 7.  We really don't want to bother with dealerships if we don't have to.

if I have to however, I was going to look into Roadways-I think its called....

Tonya

[rizeninme]

We reaffirmed one vehicle in our chap 13 BK, we traded it in and got a new vehicle about two years later. Now, after three years, I sent a GW letter, and they removed all the baddies (Thank You NFCU!) so all is well. But, all our late payments were on our record for a long time.

FYI, we were able to get a car financed through Capital One Auto one month after our Chap 13 BK with no problems at all, and our scores were really low.

[gdtobefree]

Ours told us the same thing, DO NOT pay ANYTHING until this is filed, well, we listened and I had a gut feeling we shouldn't have, now (which I will have to deal with later) Chase said they would not remove the lates, even though I begged and pleaded that our attorney had told us not to pay it, we were not late on it when we filed, but we sure were after we filed.

I had to come up with 6000.00 the reaffirm it.

My suggestion to ANYONE wanting to file a chap 7 if you are going to keep it after discharge either keep paying on it and do not include it in BK or make your attorney send them a letter stating you were advised not to make payments on anything until your 341 meeting.

Even the trustee looked at our attorney funny when she asked DH why he didn't pay anything on it while filing. The look on her face can be described as "OOOOOOOO you just screwed these people and their credit history worst then chap 7 would have".

And it is true, Dh's score BEFORE chapt 7 was 655, right before discharge it dropped to 530 after discharge it stayed at 530. If he would have kept paying it he would still have a higer score then he does now.

[granny031350]

that is a double whammy when that happens.  The lates prior to filing are score killers in addition to the bk itself.  My credit was so bad when I filed, the BK helped it.    But reaffirmation is something that has to happen while the BK is in process, before discharge.  If you are upside down, and as mentioned the car is worth keeping, and still in the BK, ask your attorney about redemption.  722 redemption could be an option in that case.  They also finance new cars (used,new) prior to discharge.

[Whew]

Thank you all for your help.  Redemption???  I'll have to read up on this.  I don't think I've heard of the process.  We are concerned about the car.  We haven't heard from the lender.

Tonya

[payor]

You have to look at the kind of vehicle you have and all situations are going to be different. Is the vehicle worth the time and money to save it? If it is, then re-affirm and save your loan. I don't think that you are going to be allowed to re-affirm the loan and discharge the late pymts. Its all of nothing, I would not re-affirm if you are not willing to bring the back payments to date. If you re-affirm without bringing the loan to date, the bank WILL go after the car right after the CH7 discharge. Just as encouragement, I re-affirmed my car loan and I can tell you my scores are good. I did have to co-sign for my wife in order to get her a car (hers was included and returned), but we were able to get a new car loan for $24,001 at 5.99 with GMAC 4 months after discharge. Good Luck, Pat

[whoisjohngalt7]

---

Whew wrote:

Hello. I have a question. I am waiting for my Chap 7 to be discharged. I am trying to do a reaffirmation agreement with my lender for my car. They would like for me to continue making payments using my old contract. My lawyer feels I should hand over the car and get a new one.

I don't know how simple it will be to get aother car. Does anyone have any suggestions?

Thank you

Tonya

---

sounds like your lawyer doesn't want to be bothered with the paperwork.

you will get offers in the mail about a starting over prgrams...a lot of offers.

but you have to consider this.....can you afford it?

how much do u have left in the car you have now, how soon will you pay it off, and how long do you think it will work for you.

i kept my old 1992 car and excluded it in the chapter 7, because i only had two months left by the time the discharge arrives.....my thinking on this is it will last me a year or two, it runs, and the savings i will have on insurance and having NO CAR PAYMENTS for one year or two is appealing.....which will give me time to save for a newer car within my budget.

the last thing you need is to be in financial trouble again after the discharge. consider whether which is cheaper and easier for you financially.

you paid your lawyer good money, the least he could do is to help with the paperwork on what you have decided.