Reaffirmation question

[ilzhoefer]

Hello:

I might have to file BK, due to a foreclosure deficiency amount. I haven't been served yet, but need to know my options.

Other than the mortgage I do have a car loan. Never had any late payments on the car loan, which is a few months old. All other credit cards paid in full and no balance.

I want to keep the car and I am not under water on it. It's worth more than the outstanding loan.

If I reaffirm the car loan, will it still keep reporting the positive tradeline to the credit reporting agencies? What are my other options??

Thank you.

[StartingOver10]

How much is the expected deficiency amount of your foreclosed loan?

In which state are you located?

When did the f/c complete (deed go back to the bank date)?

Is this the only thing on your credit that is negative or are there other issues?

Some states don't allow the lender to come back for a deficiency (non-recourse loans). Some states have a limited time in which the lender can come back. Most lenders will negotiate with you for a small payoff on the deficency amount (a small percentage). Don't file if you can take care of it another way because it will impact your car loan.

Not all lenders will report your payments made on a reaffirmed loan if you file BK.

[ezdriver]

Most auto finance companies will stop reporting once you file bankruptcy. Reaffirmation is not necessary unless the finance company demands it. As long as your payments are current, they cannot repossess the car. By the way, whether or not you get to keep the car depends on what assets are protected by exemptions. All of your assets, including things like wedding rings and other jewelry, must be declared and protected with exemptions to the extent possible. The trustee will be looking for anything value above the exempted amount. Also, the value used by trustees is not retail value. For example, I have a 2007 Mercedes that cannot be bought retail for less than $24k but the trustee had a value of $15k on the claim.

If you are considering filing, retain an experienced  bankruptcy attorney to handle the filing for you.