Help!!! Chapter 7 and Reaffirmation

[pip3man]

Hey guys please I need some urgent answers. June 30 is the deadline I have to return the reaffirmation paperwork. My goal is to keep the vehicle and continue payments once my bankruptcy discharges next week. Everything I've read here seems to suggest never to reaffirm an auto loan. So my question is, do I sign and return the paperwork and let them know I'll not be reaffirming the loan or do I not return the paperwork at all and just resume my payments as usual once I discharge? Also since I filed BK7 in March, I stopped making payments on the loan. Is it possible to request those payments in arrears added to the back end of the loan so I can start afresh without any past due payments or I would need to make all the missing payments ($5k) upfront if I'm to keep the car which is my goal? BK is scheduled for discharge on July 7th. TIA for any advise.

[DebtStinks]

I'm not a BK attorney, but my understanding is without a reaffirmation agreement in place and accepted by the lender, you'd likely be required to "catch up" on those payments to keep them from taking the vehicle. Granted, if you don't reaffirm, it's not going to negatively effect you or your credit, but just look at it from the lenders perspective. You filed CH7, behind on payments by 5k, no reaffirmation agreement in place...

You're right in saying that MOST will tell you NOT to reaffirm a vehicle loan as it obligates you to the contractual payment agreement AND opens up the opportunity for the lender to sue you, garnish wages, etc if you were to reaffirm and then default later on...

I reaffirmed my vehicle loan when I filed CH7 and all went well. While I did NOT "renegotiate" the terms of my remaining balance, I have heard stories of debtors doing just this, so I'd say if you don't want to "catch up" on the 5k arrears and still want to keep the car, you could attmept to negotiate the balance, APR, and monthly payment or even remaining term with your lender. It's worth a try, but I think they would ONLY agree to a modification if you signed a reaffirmation agreement.

Best of luck and I hope this has helped.

Again, I'm not an attorney, but this is just my 2 cents.

[ballysdad]

I am not re affirming either and not sending in paperwork. My attorney told me right from the beginning that the Trustee would not approve a re affirmation in my case based on monthly expenses. That does not mean I could not try and get it through just he would not support it either. I was not behind on any payments and continue to pay monthly. I asked Capitol One and they advised me to keep current if I was not going to sign paperwork. The negative is that they can come for the car anytime they want and it will not show payment history on my credit report. I plan to re finance the loan down the road if they do not come get it after my discharge.

[FireMedic1]

Either way dont miss a payment and get a late on your credit file. Reaffirm and it reports on your reports. Dont pay. Repo and you owe. Dont reaffirm. Doesnt report on your credit file. Pay on time and dont pay. They repo and you dont owe a thing.

[Cjethompson2017]

@pip3man you should really consult your bk attorney on this. Why are you behind on payments? Can you afford to keep the vehicle with the current payments? If you turn in the car, the you wanting to try and finance a new car? It's going to be difficult to finance after your bankruptcy is discharged. 

[pip3man]

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@Cjethompson2017 wrote:

@pip3man you should really consult your bk attorney on this. Why are you behind on payments? Can you afford to keep the vehicle with the current payments? If you turn in the car, the you wanting to try and finance a new car? It's going to be difficult to finance after your bankruptcy is discharged. 

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I became unemployed right before I filed BK7. Yes under normal circumstances I can afford to pay the note as I've been doing for the past 4yrs without a missed payment and got 1yr left. And right now I have the funds to catch up on the $5k back payments but that would mean dipping into my savings which I wouldn't want. I rather just make normal payments from my regular funds. I don't even wanna go thru the hassle of financing a new car, my car is still in excellent condition and the APR is 2.9% which I know I definitely can't get anything similar or better anytime soon being so fresh out of BK. Also, I don't have an attorney, I filed pro se.

[Cjethompson2017]

Well that makes more sense. I would just talk to your lender.