to reaffirm or not to reaffirm

[Anonymous]

Hello everyone.

New guy here. Just filed for CH 7 have have my meeting of creditors (think i heard it called 341 meeting) last week of May.

Anyway, not knowing how things work I called my Auto loan company wondering why I couldnt get access to the website. They explained that to me.

But they also told me I could regain access if I reaffirm the loan.

Reading some info here I'm really confused about if this is a good thing or not.

We just got this SUV a couple of months before officially filing and have every intention of keeping it. Hoping to maybe refinance in a year or so for a better interest rate.

But from what i read if my situation changed I could always give it up later, and not be impacted by this if I dont reaffirm? Is this the advantage?

IS there an advantage to reaffirming?

Any thoughts on if I should reaffirm, and if so do I need to talk to my attorney prior to this meeting?

[0REDSOX7]

If they will let you keep it without reaffirming, then don't do it - especially if you're going to refinance it in a few months outside of your discharge.

Bankruptcy allows you to start new - and reaffirming will simply prevent that should something happen...

[krielly]

Just a quick note comes to mind (although you may already be aware of this):

Make sure you make your regularly scheduled payments ON TIME. Uncertain if you were paying on line, but I've seen countless people state they lost their online access to their account, and use that as a reason they missed or were late on a payment. It's not an acceptable excuse, and could get your car reposessed.

It's highly unlikely your lender will have any issues with you keeping the vehicle as long as you are making the payments on time. If they are getting their monthly payment as agreed, they are happy.

 K

[0REDSOX7]

Also, if you do reaffirm, be sure to include mandatory credit reporting to all three bureaus in the agreement. Just because you reaffirm does not mean you will get your payments reporting to the credit bureaus - it has to be a stipulation.

[Anonymous]

OK, thanks for the info. It makes more sense now.

Sounds like the smartest thing is not to reaffirm, although it would be nice to have them report to the credit bureaus. But I like the feeling of knowing if things change they cant come after me.

So if I dont reaffirm, but in a year or so I try to refinace the car, I'm assuming this changes everything right?

This would be a new, post bk loan?

[0REDSOX7]

You are correct - refinancing would be a brand new loan and would report to the CBs, thus giving you payment history.

[FireMedic1]

Not to throw a wrench in this convo. I reaffirmed last year and kept my truck with Cap1. 2 yrs, no lates, and I can afford the payments. Once Cap1 got the notice of BK. They shut down my access to the website. I signed papers with my lawyer to reaffirm before the 341 meeting and after 60 days after DC. Then they re-opened it. They reported all along to the CRA's my on time payments. I kept the truck knowing this was all I had as credit paid on time which lead to my siggy below. Yes. Everyone has different circumstances in BK. Reaffirming the truck helped me to where I'm at now with Cap1. It's now listed as Pays on Time/ Reaffirmed. Who knows where I'd be if I turned the truck in. Thats the $64,000 question. Good luck either way.

[0REDSOX7]

You'll see that reaffirming on here is met with much resistance - but - if the situation is right, then by all means go for it.

If you have a great rate, or enough equity as the car would not exceed the state exemptions of your case or you're not upside down, then it may be in your best interest to reaffirm (again, stipulate that they report monthly if you do - even though it appears that Cap One does - it wouldn't hurt to make it legally binding).

With that said - each situation is different and would be a great question for your attorney.

[FireMedic1]

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@0REDSOX7 wrote:

You'll see that reaffirming on here is met with much resistance - but - if the situation is right, then by all means go for it.

If you have a great rate, or enough equity as the car would not exceed the state exemptions of your case or you're not upside down, then it may be in your best interest to reaffirm (again, stipulate that they report monthly if you do - even though it appears that Cap One does - it wouldn't hurt to make it legally binding).

With that said - each situation is different and would be a great question for your attorney.

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Very true. I wasn't upside down. Also having that established good record w/Cap1. Main reason I kept it.

[Anonymous]

Very good information. Thank you so much.

So just to confirm, say i dont reaffirm and in a couple of years hopefully im in a good place in my credit rating (as good as one can be post bk). You're telling me that I can walk away from the vehicle, if needbe, and it wont affect any progress I've made on my credit?