did not send in reaffirmation on auto loan before discharge...what to do

[Anonymous]

I misunderstood and did not send in my reaffirmation paperwork prior to discharge.  My discharge was on 9/11/17.  I have an auto loan with Wells Fargo Dealer Services.  I also did not pay my auto loan during the bankruptcy process. I know...I feel so stupid.  I thought I could send it in after.  According to KBB the trade in value of my car is approx 10-11k.  My remaining balance on the car loan is approx 11,700.  I just made two payments.  Should I come up with the remaining 1 month past due payment and keep paying and send in the reaffirmation paperwork?  I called wfds and they said that they can't accept reaffirmations after discharge.  I am thinking this may have been said because I was past due 3 payments.  Was thinking of paying it current and mailing it in and hoping they accept it.  If they don't and I make my account current and keep making timely payments will they not repossess my vehicle?  If so will I get the pink slip and own it after I complete my payments?  Not sure what to do!  I have a great rate of 2.99%.  My account still shows up online on their website and I was able to make a payment tonight.  It shows up as discharged with a balance of 0 on my credit report though.  Advice?  Thanks for any help you can offer.

[Dalmus]

I'm not a BK7 lawyer, so you really should run any advice given here past the lawyer that handled your BK...

That being said:  **GENERALLY**, if you do not reaffirm your auto loan, as long as you keep the account current and pay as agreed, the lender will not reposess the car.  The main reason isn't because they like you, its because there's a cost to them to initiate the reposession process, and if you're already paying as agreed, its not worth the effort.  Technically, in the BK process your only options are to surrender or reaffirm, but its up to the lender to actually take posession of your vehicle if you don't reaffirm.  This is called a "Ride Through."  When you make your final payment, the vehicle is yours just like normal.

That's not to say there are lenders out there that won't reposess even if you ARE making payments, but if you do a little research and ask your BK7 lawyer, you'll be able to see the likelyhood of what WF will do.

On a personal note, its usually a bad idea to reaffirm ANY debt.  You aren't able to file BK again for several years.  By not reaffirming the debt, you are able to walk away from that car in case something unexpected happens and you can't afford it anymore.

[Anonymous]

Thank you so much for the response Dalmus.  I really appreciate it. I called my bk lawyer and spoke to the paralegal there and he said there was nothing they could do at this point and I would have to negotiate with the lendor.  I will reach out to the actual attorney to see if he has experience with this particular lendor and what he thinks they will do.  My worry is I was behind 3 payments (time during the bankruptcy prior to discharge) because I thought I had to stop paying until after discharge when I reaffirmed.  I now know I was supposed to keep paying and reaffirm prior to discharge.  So I am guessing the best thing I can do at this point is to keep the account current, pay on time and not send in the reaffirmation agreement.  If anyone has experience with Wells Fargo Dealer Services I'd appreciate any info you can give.  Love this forum.

[Anonymous]

FYI I spoke with a different representative at Wells Fargo Dealer Services today and she said that  if I paid the account current and paid on time each month that I would be able to keep the car and would own it when it was paid off.  Hope that helps someone who may be wondering the same thing.

[DaveInAZ]

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@Anonymous wrote:

I misunderstood and did not send in my reaffirmation paperwork prior to discharge.  My discharge was on 9/11/17.  I have an auto loan with Wells Fargo Dealer Services.  I also did not pay my auto loan during the bankruptcy process. I know...I feel so stupid.  I thought I could send it in after.  According to KBB the trade in value of my car is approx 10-11k.  My remaining balance on the car loan is approx 11,700.  I just made two payments.  Should I come up with the remaining 1 month past due payment and keep paying and send in the reaffirmation paperwork?  I called wfds and they said that they can't accept reaffirmations after discharge.  I am thinking this may have been said because I was past due 3 payments.  Was thinking of paying it current and mailing it in and hoping they accept it.  If they don't and I make my account current and keep making timely payments will they not repossess my vehicle?  If so will I get the pink slip and own it after I complete my payments?  Not sure what to do!  I have a great rate of 2.99%.  My account still shows up online on their website and I was able to make a payment tonight.  It shows up as discharged with a balance of 0 on my credit report though.  Advice?  Thanks for any help you can offer.

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No, you can't reaffirm after discharge because at discharge your case is closed. To reaffirm the judge would have to re-open your case, and for a reason that you didn't send the reaffirmation in on time that's not going to happen.

Yes, your car loan will show up on your credit report as Closed, $0 balance, Included in BK. Your payments will not be reported because the there is no debt, it was discharged. If you keep your payments current it is extremely unlikely Wells would try to to repo.