NFCU and Reaffirmed Vehicle

[toi34]

I filed Chapter 7 in December and my petition said I intended to reaffirm my car with NFCU (unfortunately they'll be burned for a $15,000 LOC).

NFCU sent the paperwork to my attorney, and we talked about it at the 341 Meeting last week, but I didn't sign it. My atty said I have until the DC date to send it in, which is in April.

I have perfect payment history and obviously want to keep this tradeline. I've been paying my car note through the BK and will continue to pay after DC until it is paid off.

However, over the last few days I've been getting alerts that my car loan with NFCU is no longer reporting on EQ and TU, I'm sure EX will be next.

Is this how NFCU rolls? They report the BK'd LOC, but delete the perfect payment history of the vehicle loan?

[MyDataMyChoice]

Be Careful of the Credit Unon Cross Collatorization 

[Anonymous]

Hi Toi34,

I was in the same boat as you when I filed in July 2018. I had decided to reaffirm due to perfect payment history.  Burned Navy with a lot of credit card debt but wanted to keep car with them.  My lawyer rec'd letter from Navy and he would not sign it because i was upside down and felt that I could still keep the car if I paid on it, but didn't want to sign due to me being upside down. We had to go to court for it, judge explained to me my options. At the hearing i decided not to reaffirm and just pay on time and keep car.  Navy removed my tradeline. As of Nov 2018 they actually removed all my tradelines with them. I haven't pulled a recent report yet though. After i was discharged, I decided that that a bulk of my money was going into the car and i truly needed a fresh start. So i called Navy and told them I will not be keeping car.  I called them Dec 2018 and the car is still in my driveway as of today.  The guy told me they can't pick it up until they recieve title and he requested it from my DMV but my state is 2 months behind and he will call me when he receives it.  Not sure how true that is, but I have since obtained a new car loan, with a lower rate.  I read something somewhere that even if you paid off car, they hold the title to it until you pay them what you owe them? I'm not sure if i understood that correctly but you may want to research that part.  My car payment was $500, I was $8K upside down and it just made sense not to keep it.  Hope that helps and good luck to you.

[Anonymous]

They probably just have not gotten around to reporting the other account yet. They will.

[toi34]

THANK YOU ...THANK YOU Iluvcoffee!

This was just the response I was looking for. I have decided not to reaffirm the car as I too am upside down (worth $3500+, owe $15,900) AND the car needs some repairs. My lawyer basically said I may be "between a rock and a hard place": If I reaffirm the car, I'm liable for the next 3 years (and who knows what could happen?), and there is no guarantee that I would even get the title unless I pay back the LOC, which essentially adds another $15k to the car loan; OR...if I don't reaffirm and continue to pay on-time, that Navy could still come a repo the car at anytime, I therefore would just be throwing money away. He finally advised me to NOT reaffirm, stop paying on the car, save that money and buy another car.

I have an emotional attachment to the car; but i'll just keep paying monthly until Navy comes to get it I guess.

Oh...and Navy has deleted ALL of my accounts with them, its like they never existed. ALL those years of perfect payment history is gone. 

[Anonymous]

I have a car with Navy.  Never been late, but decided to surrender it in my 13 I filed back in December 18.  They also deleted all my NFCU lines from my credit report.  Mine was also perfect leading up to the day I filed.  So it should have remained with perfect payments.  But they deleted it.  No more trace of that car on my report at all and we are going on three months.  

[MyDataMyChoice]

synchrony did the same - deleted the tradelines all together

comenity - i had 12 accounts 8 in good standing and closed for over a year never late 4 included in ch7 they marked all accounts as ch7 bankrupcy

[Anonymous]

Glad to be able to help Toi34.  Also, when i spoke to guy from BK dept at Navy, they really want you to keep the car. They don't want it. He was trying to convince me not to surrender it saying I have such a great payment history and i have XX more payments left.  So if you just pay on time, keep registration and insurance current, they don't want the car. They just want your money. lol