topic Re: Reaffirming... in Bankruptcy

Reaffirming...

empressj — Thu, 06 Oct 2016 19:20:50 GMT

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?

Re: Reaffirming...

Anonymous — Thu, 06 Oct 2016 20:52:35 GMT

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.

Re: Reaffirming...

empressj — Thu, 06 Oct 2016 21:03:07 GMT

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.

Re: Reaffirming...

empressj — Thu, 06 Oct 2016 21:04:51 GMT

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

Re: Reaffirming...

Scupra — Thu, 06 Oct 2016 21:35:38 GMT

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

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

Re: Reaffirming...

Anonymous — Thu, 06 Oct 2016 22:04:51 GMT

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.

Re: Reaffirming...

empressj — Thu, 06 Oct 2016 22:15:47 GMT

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.

Re: Reaffirming...

empressj — Thu, 06 Oct 2016 22:17:57 GMT

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

Re: Reaffirming...

sarge12 — Thu, 06 Oct 2016 22:45:27 GMT

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

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.

Re: Reaffirming...

empressj — Thu, 06 Oct 2016 23:58:38 GMT

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

Re: Reaffirming...

sarge12 — Fri, 07 Oct 2016 00:21:05 GMT

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

The creditor may require a reaffirmation agreement, but if the debtor refuses to sign, but continues to pay, it is usually not in their best interest to repossess if there will be a defecit. They will usually decide to roll the dice, and hope you pay. If you stop paying they can then repossess the car, and be just as well off. They are bound by law to release the lein once paid off. My Neice kept her house without reaffirming the mortgage.

Re: Reaffirming...

sarge12 — Fri, 07 Oct 2016 00:26:40 GMT

@sarge12 wrote:
@empressj wrote:
I was under the assumption that I had to reaffirm in order to keep the car, otherwise they'd repossess it.
The creditor may require a reaffirmation agreement, but if the debtor refuses to sign, but continues to pay, it is usually not in their best interest to repossess if there will be a defecit. They will usually decide to roll the dice, and hope you pay. If you stop paying they can then repossess the car, and be just as well off. They are bound by law to release the lein once paid off. My Neice kept her house without reaffirming the mortgage.

This may also depend on the bankruptcy laws in your State...some require reaffirmation to keep an asset, some do not. South Carolina does not.

Re: Reaffirming...

sarge12 — Fri, 07 Oct 2016 00:40:39 GMT

If you cannot make the payments, they will take your car away from you.
If you DO sign a reaffirmation agreement then you default on your payments and they take it away from, they will SUE afterwards.
If you do NOT sign a reaffirmation agreement, then you default on your payments, they will take it away and they can NOT sue you afterwards.
If you do NOT sign a reaffirmation agreement, then even if your payments are current, they can repossess it anyway.
But only Ford, Jaguar, SDCCU and California Coast Credit Union have stated that they will take it away if you don’t sign a reaffirmation agreement.
But there is no reason to believe that the other banks and credit unions can not or will not change there minds some day.

The previous is cut and paste from a website http://murrieta-bankruptcy.com/bankruptcy/reaffirmation-agreements/

Re: Reaffirming...

Anonymous — Fri, 07 Oct 2016 00:51:46 GMT

Your assumption about being required to re-affirm could possibly be correct in other states but absolutely not in NJ.

I did not re-affirm my loan.

I do not receive bills or statements. I call in to find out balance when I want and pay the bill through Capital One payments where they send a check to the company.

Sure it's easier to do it online with car loan company but a small inconvenience versus the benefits of it being non-reaffirmed.

Given that it is relatively new depending on the interest rate you may or may not be upside down on it.

Since the Hyundai shows as IIB it won't look as though you are trying to purchase a 2nd car. WIthin a month post discharge you should be able to get a car financed. I did within a couple of weeks but not at the greatest interest rate and now like 2 months later I was able to get a second car (first was for daughter) for myself with a decent interest rate.

Don't re-affirm.

Re: Reaffirming...

sarge12 — Fri, 07 Oct 2016 01:00:37 GMT

I will add that reaffirmation agreements are intended to protect creditors, not debtors. Unless there is significant equity, it is usually better for the debtor to keep the asset without signing a reaffirmation agreement.

Re: Reaffirming...

empressj — Fri, 07 Oct 2016 03:04:51 GMT

Thank you for that information. It's helpful and appreciated.

I didnt know know all of this prior to filing and have mentioned reaffirming my car loan with attorney. When I asked the paralegal, she advised me to remind the attorney about it. I just filed so maybe I still have time to reassess. I'm curious why he never mentioned this when it may be in my best interest.

My car loan is with Wells Fargo Dealer Services, I've heard they are a tough bank to deal with. im curious about their rules in regards to reaffirming

Re: Reaffirming...

sarge12 — Fri, 07 Oct 2016 03:17:53 GMT

@empressj wrote:
Thank you for that information. It's helpful and appreciated.

I didnt know know all of this prior to filing and have mentioned reaffirming my car loan with attorney. When I asked the paralegal, she advised me to remind the attorney about it. I just filed so maybe I still have time to reassess. I'm curious why he never mentioned this when it may be in my best interest.

My car loan is with Wells Fargo Dealer Services, I've heard they are a tough bank to deal with. im curious about their rules in regards to reaffirming

I do not know, but your lawyer will advise you about any reaffirmation I'm sure...that does not become necessary yet. For now he would probably only be advising to stay current on secured debts, and quit paying unsecured debts. Those details will be for the 341 meeting...which by the way, is no big deal.

Re: Reaffirming...

empressj — Fri, 07 Oct 2016 12:32:08 GMT

I'm in NJ and hopefully WFDS allows me to retain and stay instead of reaffirming. It's sounds like it's in my best interest. Quick question: since I've already filed is it too late to change my mind about reaffirming? Or is that sometudone at the 341 meeting? I don't want to miss the opportunity.

Thanks again!

Re: Reaffirming...

Anonymous — Fri, 07 Oct 2016 12:27:17 GMT

I live in NJ and my lien holder Thrift Investment corp told me as long as I make payments they cannot legally take the car.

Re: Reaffirming...

empressj — Fri, 07 Oct 2016 12:32:57 GMT

May I ask if you reaffirmed or did they allow you to pay and stay? Thanks