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Post Bk7 Auto Loan NOT Reaffirmed


Post Bk7 Auto Loan NOT Reaffirmed

Hi Y'all!


Its been a great education joining here and learning all things credit and how to improve my dismal situation~


When I filed in late '11 I knew nothing about reaffirming my auto loan.  My attorney just stated we can keep it out.  When it discharged in January, I asked my attorney about reaffirmation. They told me to contact the lender, which I did and they told me to contact the lawyer to draw up documents.  Well, many months go by (I frankly forgot it) and apparently there was a term limit, which I exceeded.


Long story shorter. The loan is not reaffirmed, off my credit report.  I was paying up until September and now I am looking to obtain new financing as this car is getting too old and too many miles to refi. I need to get a new car!This car has 90k miles on it and is at the point now where repairs are going to get ugly and expensive.


I owe $9k on the loan. I'll be lucky to get $9,000 retail (even less on trade).  Can one try to negotiate with the lender for a lower rate? Or just mail them a set amount and be done with it?  Its not being reported to the agencies.  They have removed it and will be unable to re-post it to the CRAs right?


Any thoughts, comments? 

Starting Score: N/A
Current Fico Score: 655
Goal Score: 750

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Message 1 of 3
New Contributor

Re: Post Bk7 Auto Loan NOT Reaffirmed

I think if you didn't reaffirm, you aren't responsible for the loan at all anymore.  It's not on your credit and they can't sue you for it because it was included in your bankruptcy.  Stop paying on it and save for a down payment on another car. 


Hopefully someone else will chime in because I could be wrong.  That is my understanding, though.  I didn't reaffirm my car in my bk and they reported it as IIB with 0 balance before I even would have had a chance to think about a reaffirmation. 



BK Filed 7/1/12 --- EX: 494 EQ: 505 TU: 505
10/12 EX: 599 EQ: 599 TU: 599

BK Discharge 10/23/12
Cap1 $3000 (AU) / NFCU Visa $500

GOAL #1: 660
Message 2 of 3
Valued Contributor

Re: Post Bk7 Auto Loan NOT Reaffirmed

Your BK discharge extinguished your obligation to pay the debt.  The lender retains their security interest in the vehicle.  If you decide to turn in the car you can do that without a further negative to your credit.  The lender normally won't report your payments after the discharge.


It's a good thing you didn't reaffirm, because then you would owe the $9K.  Reaffirmations must be approved by the BK Judge, and that must be done before discharge.


I agree with the previous post, stop paying and shop for a car you can afford.  Once you miss a payment the lender will repo the car, probably without notice.  So don't leave anything of yours in it.  To avoid a middle of the night repo consider calling the lender to arrange to turn it in.  But there won't be a repo added to your CR because your debt was discharged in BK.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
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Message 3 of 3