Questions about vehicle reaffirmation

[Kaydee84]

Before reading this forum I didn't realize that there were good reason not to reaffirm your car. Thank you for helping me with that. I do have a few questions though. We have a lease that we are currently behind in payments on. By the time we file, we will have caught up on these payments. Is it better to reaffirm because of the late payment history? Does your stance on reaffirming (or not) change because its a lease and not a car we will own outright when the lease contract ends? We have Chase Auto Finance as our creditor, I'm not sure if they are more strict and likely to repossess the car if its not reaffirmed especially with the late payment history. We already had a car repo'd by them earlier this year so I guess that could go into their decision as well. My husband likes the idea of not reaffirming and continuing to make payments (on time) however he worries that they will repo it and then with a bankruptcy on our credit, we won't be able to get another car. 

What do you guys think?

[Anonymous]

If you're caught up on payments, and will continue to pay then most likely Chase will allow you to keep paying on the car. Honestly IMO, the damage is already done with late payments. I would rather put the money to filing now vs later as Chase can't do anything during the BK stay and purchase a new vehicle. If you can wait till after DC that would be better for you since with a repo on record, and a bk if you get a new one during an open bk I'm guessing your APR will be a high one. If you wait till after DC or you have the DC papers in hand, you *should* be able to get a new car easier with a lower APR.

[Kaydee84]

Hi thanks for your reply. I really appreciate your opinion. I'm confused though... Chase can't repo a car that's included in bankruptcy? We would only need to get another car immediately if Chase took our current one back. We would definitely wait on getting a 2nd car until after bankruptcy. If you were me, you'd use the money to file for BK rather than pay the car?

[empressj]

Kaydee84

When one files bankruptcy an automatic stay is placed, meaning the finance company cannot take any action without the approval from the court. I think this is what the other person was referring to.So this will give you time to make the best decision for yourself based on your needs.

I am in the midst of chapter 7. We filed in Oct, had 341 meeting. We have been paying our car payment timely as we won't be reaffirming but want to keep car and pa,n to either refinance the loan with CU post DC or will get another car. We're in a pickle and will need an additional car because my husband's car was totaled last year and have been commuting and it has been a PAIN with one car.

Best of luck

[Kaydee84]

I definitely understand that pickle. We need another car too. Our little car doesn't work with a new baby anymore. Can't even sit in the front seat because of the baby's car seat lol. One car sucks but I figure if we can file soon, we can get another bigger vehicle after discharge, hopefully.  I didn't know that the finance company can't repo it without court approval once bankruptcy is filed. Thank you for the info.