Reaffirming...

[empressj]

Hi, I have some questions about reaffirmation. I recently filed and plan reaffirm my loan and have questions if the creditor will negotiate loans terms because they don't any to take a loss.Is this true? Have you heard of this?

[Anonymous]

What kind of loan?

Reaffirmation may also depend on the state you live in.

In NJ for example you do not have to re-affirm if you want to keep your car.  The downside is it no longer reports and you may not be able to get/pay the bill online you may have to mail in checks.

The good news is it no longer reports and if you want to keep the car, keep the payments current. If you decide to walk away you can walk away at any point in time with no additional ill effects.

Other loans maybe different and again this may vary by state.

[empressj]

Hi,

It's a car loan and I'm in New Jersey. So if I understand correctly I may not have to reaffirm to keep car, that's interesting. I'd be concerned about them repossessing the car. Mailing checks in would suck.

[empressj]

Another question. When you say walk away at any point, do you mean post discharge?

[Scupra]

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@empressj wrote:
Another question. When you say walk away at any point, do you mean post discharge?

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Yes, if you don't reaffirm you are able to give the car back at any time, no consequences. Doing a pay and stay would be optimal if you could. It usually doesn't make sense to reaffirm. I know you had some reasons though

[Anonymous]

If in NJ do not re-affirm unless the car is new, under warranty, in increadible shape, not upside down on loan, loan has low interest rate...

This way if anything goes wrong after the CH7 you can walk away from it.

I was able to finance 2 cars just a couple of months after my discharge.

[empressj]

Hi
I have 2013 Hyundai Santana Fe sport. Got it in Jan 16 post a bad car accident. I have 10 year extended warranty (included in loan). My husband and I are sharing one car and its brutal. We need this car for work transportation and in hopes of getting another sometime next year will certainly speak with attorney about this.

Thanks for the info.

[empressj]

I'd also like to refinance with my credit union. Thanks again

[sarge12]

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@empressj wrote:
Another question. When you say walk away at any point, do you mean post discharge?

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In many states, if not reaffirmed the loan is actually shown on the credit report as IIB with a 0 balance. The creditor does however still have a lein on the car that will not be released until the lein is satisfied. If not reaffirmed, but you continue to remain current on payments, you can keep the car, and no further credit reporting will be done..good or bad, as the debt was discharged, but the lein was not. If at any time you decide to allow voluntary repo, it will not even show as such on the credit report. The creditor will not send bills, because they can not be seen as trying to collect on discharged debt. You can usually set up auto bill pay for the payment at your bank. This can also be done with mortgages.

[empressj]

I was under the assumption that I had to reaffirm in order to keep the car, otherwise they'd repossess it.