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Reaffirming...

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sarge12
Senior Contributor

Re: Reaffirming...


@empressj wrote:

I was under the assumption that I had to reaffirm in order to keep the car, otherwise they'd repossess it. 


The creditor may require a reaffirmation agreement, but if the debtor refuses to sign, but continues to pay, it is usually not in their best interest to repossess if there will be a defecit. They will usually decide to roll the dice, and hope you pay. If you stop paying they can then repossess the car, and be just as well off. They are bound by law to release the lein once paid off. My Neice kept her house without reaffirming the mortgage. 

TU fico08=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
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Message 11 of 24
sarge12
Senior Contributor

Re: Reaffirming...


@sarge12 wrote:

@empressj wrote:

I was under the assumption that I had to reaffirm in order to keep the car, otherwise they'd repossess it. 


The creditor may require a reaffirmation agreement, but if the debtor refuses to sign, but continues to pay, it is usually not in their best interest to repossess if there will be a defecit. They will usually decide to roll the dice, and hope you pay. If you stop paying they can then repossess the car, and be just as well off. They are bound by law to release the lein once paid off. My Neice kept her house without reaffirming the mortgage. 


This may also depend on the bankruptcy laws in your State...some require reaffirmation to keep an asset, some do not. South Carolina does not.

TU fico08=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 12 of 24
sarge12
Senior Contributor

Re: Reaffirming...

  1. If you cannot make the payments, they will take your car away from you.
  2. If you DO sign a reaffirmation agreement then you default on your payments and they take it away from, they will SUE afterwards.
  3. If you do NOT sign a reaffirmation agreement, then you default on your payments, they will take it away and they can NOT sue you afterwards.
  4. If you do NOT sign a reaffirmation agreement, then even if your payments are current, they can repossess it anyway.
  5. But only Ford, Jaguar, SDCCU and California Coast Credit Union have stated that they will take it away if you don’t sign a reaffirmation agreement.
  6. But there is no reason to believe that the other banks and credit unions can not or will not change there minds some day.

The previous is cut and paste from a website  http://murrieta-bankruptcy.com/bankruptcy/reaffirmation-agreements/

TU fico08=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 13 of 24
Anonymous
Not applicable

Re: Reaffirming...

Your assumption about being required to re-affirm could possibly be correct in other states but absolutely not in NJ.

 

I did not re-affirm my loan.

 

I do not receive bills or statements.  I call in to find out balance when I want and pay the bill through Capital One payments where they send a check to the company.

 

Sure it's easier to do it online with car loan company  but a small inconvenience versus the benefits of it being non-reaffirmed.

 

Given that it is relatively new depending on the interest rate you may or may not be upside down on it.

 

Since the Hyundai shows as IIB it won't look as though you are trying to purchase a 2nd car.  WIthin a month post discharge you should be able to get a car financed.  I did within a couple of weeks but not at the greatest interest rate and now like 2 months later I was able to get a second car (first was for daughter) for myself with a decent interest rate.

 

Don't re-affirm.

Message 14 of 24
sarge12
Senior Contributor

Re: Reaffirming...

I will add that reaffirmation agreements are intended to protect creditors, not debtors. Unless there is significant equity, it is usually better for the debtor to keep the asset without signing a reaffirmation agreement.

TU fico08=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 15 of 24
empressj
Frequent Contributor

Re: Reaffirming...

Thank you for that information. It's helpful and appreciated. 

 

I didnt know know all of this prior to filing and have mentioned reaffirming my car loan with attorney. When I asked the paralegal, she advised me to remind the attorney about it. I just filed so maybe I still have time to reassess. I'm curious why he never mentioned this when it may be in my best interest. 

 

My car loan is with Wells Fargo Dealer Services, I've heard they are a tough bank to deal with. im curious about their rules in regards to reaffirming

Discharged Jan 2017
Rebuilding credit
Message 16 of 24
sarge12
Senior Contributor

Re: Reaffirming...


@empressj wrote:

Thank you for that information. It's helpful and appreciated. 

 

I didnt know know all of this prior to filing and have mentioned reaffirming my car loan with attorney. When I asked the paralegal, she advised me to remind the attorney about it. I just filed so maybe I still have time to reassess. I'm curious why he never mentioned this when it may be in my best interest. 

 

My car loan is with Wells Fargo Dealer Services, I've heard they are a tough bank to deal with. im curious about their rules in regards to reaffirming


I do not know, but your lawyer will advise you about any reaffirmation I'm sure...that does not become necessary yet. For now he would probably only be advising to stay current on secured debts, and quit paying unsecured debts. Those details will be for the 341 meeting...which by the way, is no big deal.

TU fico08=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 17 of 24
empressj
Frequent Contributor

Re: Reaffirming...

I'm in NJ and hopefully WFDS allows me to retain and stay instead of reaffirming. It's sounds like it's in my best interest. Quick question: since I've already filed is it too late to change my mind about reaffirming? Or is that sometudone at the 341 meeting? I don't want to miss the opportunity.

 

Thanks again! 

Discharged Jan 2017
Rebuilding credit
Message 18 of 24
Anonymous
Not applicable

Re: Reaffirming...

I live in NJ and my lien holder Thrift Investment corp told me as long as I make payments they cannot legally take the car.

Message 19 of 24
empressj
Frequent Contributor

Re: Reaffirming...

May I ask if you reaffirmed or did they allow you to pay and stay? Thanks
Discharged Jan 2017
Rebuilding credit
Message 20 of 24
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