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emily15
Regular Contributor

Auto loans

I was reading old pinned threads and noted that banks can repossess a vehicle even if payments are current, due to bankruptcy or not.

 

has anyone had experience of a bank taking vehicles that they are current on?

 

I have two vehicles one almost paid off and my attorney wants to try reaffirming. Im worried about the bank taking the vehicles.

 

Tried searching but nothing coming up. 

any insight would be helpful. 
I have positive equity on both and current (always) on payments. 

I do have CCs from the same bank (BofA) that will be included in the bk.

 

thanks in advance. 

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TRC_WA
Senior Contributor

Re: Auto loans

I've never heard of banks repossessing vehicles with a current loan.  They want you to pay the loan... why would they take it if you were current?

 

If you've filed BK you are protected from them taking it as well.  As for your attorney wanting to reaffirm... why wouldn't the banks agree with that?  They'd get their money which is all they want.

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Message 2 of 3
despritfreya
Frequent Contributor

Re: Auto loans

In the context of a Chapter 7 a debtor is required to file a Statement of Intention and is then required to act on that intention.  If the Debtor fails to act on the intention (sign a reaffirmation agreement) within the time limit, the protection of the automatic stay lifts and the lender may be entitled to repossess the vehicle even if payments are current.  So, technically, if you do not sign a reaffirmation agreement, yes, the lender can repo. Ford Motor Credit was notorious for this.

 

But. . .  many judges do not like this so they have gotten around the issue by not approving reaffirmation agreements.  Read the below case for more understanding of the issue:

 

https://casetext.com/case/in-re-moustafi

 

Des.

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