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Waiting for Discharge (filed 09/15)

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Anonymous
Not applicable

Waiting for Discharge (filed 09/15)

I had my mtg of creditors on Oct 19, 2015, and in my BK documents I stated I wanted to retain my vehicle. My attorney refuses to sign my reaffirmation. He stated the courts won't approve it. I had a second opinion by another attorney, he also agrees for me not to move forward with the reaffirmation.

So, since I'm not signing the reaffirmation that the bank sent my attorney, and yes I'm current on my car loan, can the bank take it (repo)? My attorney said it's best not to sign it, as I can give the vehicle back at any time, without the bank coming after me. Will my credit report show discharged, and if so, can the bank indicate on my credit report anything negative?

Thanks in advance!
Message 1 of 4
3 REPLIES 3
DaveInAZ
Senior Contributor

Re: Waiting for Discharge (filed 09/15)


@Anonymous wrote:
"Since I'm not signing the reaffirmation that the bank sent my attorney, and yes I'm current on my car loan, can the bank take it (repo)?"
- Usually not, but are you sure the lender is a bank and not a credit union? The only way a lender can repo is if you are in default. Usually you have to be more than 30 days late on a payment to be in default, but many credit unions put in their loan docs that simply filing BK makes you in default. Banks rarely do this, and as long as you remain current on the payments they're happy to accept your payments and let you keep the car..
"Will my credit report show discharged, and if so, can the bank indicate on my credit report anything negative?"
- Since you are not reaffirming, the car loan should show on your credit report as Discharged in BK, $0 balance, Closed, and that's all the bank can report since you are current on payments. And yes, it will report as Closed because the debt was discharged, it's just the lien on your car that continues, enabling them to repo if you go more than 30 days late. 
Message 2 of 4
kenhuynh1224
Established Member

Re: Waiting for Discharge (filed 09/15)

I got 341 meeting on 07/12 and discharge letter come to my mailbox on 09/15 . Check with my fico and all my debt completely gone by the time I got discharged . And I wait until 10/15 and apply for Cap1 credit card and got approved for both QS1 and Platium with credit step . Time to rebuilt again !

I read alot on here, somebody got approval before and on same day with discharge , I tried it and Cap1 denied me . All I have to wait month and done , I burned Cap1 around 5k on my BK .

I keep my vehicle with me and lawyer said just make payment on time and when the loan paid of ( 7 more payment ), the bank will send me a title without problem.

I think if your vehicle value is more than the loan you owned , court wont let you keep it . But if the value of your vehicle less than the amount of loan ( my case ) , no problem to keep it.

Just my thinking ...
Message 3 of 4
Anonymous
Not applicable

Re: Waiting for Discharge (filed 09/15)

Anyone else share their story? Great info!

Message 4 of 4
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