If there is an issue with the valuation being too high, then I would just keep paying without doing the reaffirmation. The downside is that you won't have the auto loan tradeline on your credit report, but on the upside, you won't be saddled under a valuation you don't think is fair.
YMMV but my attorney laid out the options for me (reaffirm or don't) and she told me that it's extremely, extremely rare that a vehicle gets repo'd so long as you are making all your payments on time. So if you aren't comfortable with doing a reaffirmation with the valuation assigned, then I would probably go the route of just keep paying without reaffirming the loan and roll the dice, but of course you can only do what you feel the most comfortable with.
Also as an aside, if something were drastic to happen and they did a repo on it, post-BK, an auto loan is probably one of the easiest things to get and although you wouldn't get favorable interest rates or terms, an auto loan could always be refinanced a year or so later to get better terms on the loan. 4+ months past discharge of my BK, I am STILL getting letters in the mail from car dealers.
YMMV but my attorney laid out the options for me (reaffirm or don't) and she told me that it's extremely, extremely rare that a vehicle gets repo'd so long as you are making all your payments on time. So if you aren't comfortable with doing a reaffirmation with the valuation assigned, then I would probably go the route of just keep paying without reaffirming the loan and roll the dice, but of course you can only do what you feel the most comfortable with.
Also as an aside, if something were drastic to happen and they did a repo on it, post-BK, an auto loan is probably one of the easiest things to get and although you wouldn't get favorable interest rates or terms, an auto loan could always be refinanced a year or so later to get better terms on the loan. 4+ months past discharge of my BK, I am STILL getting letters in the mail from car dealers.
I agree with MileHigh - Car loans are typically the easiest thing to get post BK. About a month after my BK I noticed my score going up. It was going up almost 30 points a month. 4 months after my discharge I went and traded my truck that I reaffirmed in for a new car and had zero issues. I actually got way better rates than I would have thought possible. If it were me, I would roll the dice and not reafirm. Then jsut wait for your score to increase and go trade it in.
@Anonymous wrote:Appreciate your feedback. My attorney shared the same - all but guaranteed that it's unlikely so long as I keep paying. Curious, did you work with Capital One as well? And it sounds like maybe you were on the fence about reaffirmation too?
No, my car loan was through the CU in my signature. I wasn't too mujch on the fence about reaffirming only because I wanted the tradeline on my CR, but I was definitely all for reaffirming when the CU sent my attorney the documents for reaffirmation with a lowered interest rate. She still made me sign documentation that I was reaffirming the loan against her advice, but since I had never been late with the loan and I don't plan on getting rid of my truck any time soon PLUS the fact the CU lowered the interest rate, I was definitely onboard with reaffirming.