Reaffirmed auto loan question

Anonymous · ‎05-26-2015

Just had my Chap 7 BK discharged on May 20 (2015). Unfortunately, the credit union that held my auto loan made us reaffirm or we would have had the car we have paid on for the past 3 years repo'd (we were not going to reaffirm and just keep paying on it, but the CU had a new rule that they require auto loans in BK to be reaffirmed if you want to keep the car). The payment is easy for us to afford (not a super expensive loan amount), so we signed the reaffirm papers and they were submitted to the court.

What I'd like to know is when will it start reporting back to the CRAs? The loan shows "closed" now, but, as I said, it was reaffirmed, and we paid on it throughout the entire BK process to keep it current. Also, will it show up as new loan or will it be the original loan re-opened? That would be better, as it would be a positive TL on my CRAs that would date back to 2012.

0REDSOX7 · ‎05-26-2015

There is no requirement that a reaffirmed loan continue to be reported to the credit bureaus after discharge. Some will do it automatically, some will not do it no matter what, and some will require it to be negotiated in the reaffirmation agreement.

Do you know if the judge, trustee, etc., approved the reaffirmation agreement?

Have you called the CU to see what they say?

BK Discharge 2/11/14

Currently in the garden.

Anonymous · ‎05-26-2015

sunmicroman - my Ford Motor Credit loan required me to reaffirm to keep the car after BK7 and they continued to report my on time payments to all three bureaus as if nothing had happened.

ezdriver · ‎05-27-2015

Credit unions do not follow standard operting procedures for banks. CUs have a different charter than do banks. CUs work to protect their owners ... aka members. Banks work to protect their high-paid executives. DOn't guess about what your lender will do. Ask them.

Anonymous · ‎05-27-2015

Called the CU. They told me to dispute the closed account on the CRAs and then when the CRAs contact the CU, it will be corrected. Thought it an odd way to go abut it, but that is what I did (Haven't disputed EX yet, but did on TU and EQ).