Question on reaffirming cars and credit report.

[ccmisery]

I reaffirmed two cars with Ford Credit, one was approved my the court and the other was a lease and Ford did not request court approval, more of a lease assumption. Well checking my credit reports I noticed they are listed as "Discharged in Chapter 7 Bankruptcy" with no balance showing, which is not the case.

I filed disputes with those that showed it as being such, am I correct in what I believe is the case that these should not be listed as being discharged?

[IBroke]

AFAIK, the one that was reaffirmed shouldn't be reported as "discharged". The other one, however, is reporting correctly if there was no official reaffirmation.

[ccmisery]

Even though I signed reaffirmation agreement with Ford Credit's representing lawyer for that vehicle? I have to check Pacer, but I am sure they both were filed. To my understanding I cannot walk away from the leased car and they never showed up to repo it.

[AngelinaCat]

I really do not understand why anyone would want to lease a car vs having a direct payment to own the thing. (Yes, I have read about the exchange, etc, etc, etc. w/o real responsibility for it, and still do not understand.) You still don't have a car, after all this is over.

Me, personally, I would have reaffirmed the auto loan if it had around 10 months or so to be done with. I would NOT reaffirm the lease under any circumstance.

Sorry. I know this does not help answer your question; this is my opinion.

[LadyInTheRed]

Leases are for people who use their cars for business and want the tax write off or who think they need a brand new car every couple of years. I understand the first reason, but not the second one. I buy a car, pay it off and then drive it until maintenance and repairs make buying a new car a reasonable financial decision.

My understanding is that a lease is assumed by the trustee. It's not the same as a reaffirmation. I am not familiar with how a lease assumption works. But, I do know that a reaffirmation agreement must be filed with the court to be valid and the debtor's attorney must certify it is not a hardship. If the attorney does not make that certification, the judge must approve the reaffirmation. No attorney certification or judge's approval, no reaffirmation.

[IBroke]

Even though I signed reaffirmation agreement with Ford Credit's representing lawyer for that vehicle?

As LadyInTheRed said, what it boils down to is the question if your signed reaffirmation agreement became official - aka signed by the attorney/judge.

[ccmisery]

I am not asking the leasing vs. financing question, either or has it's disadvantages and advantages based on your situation and cash flow. I just wanted to see why my cars were showing both as included in my discharge which is not the case and is a negative on my credit report(s).

In a nutshell at the time, if I did not assume the lease and reaffirm my financed car, I would not have a vehicle to get to work, so I had little options at the time since we need two cars and work in different locations so we cannot car pool. I also previously owned a car for 15 years that was paid off when I bought it, this alone did not help me get out of debt but it was nice not having perpetual car payments. I did however dump nearly $8000 into the car over the life of it. I suppose that is not really too bad but cars are not good investments either way. I never leased before, but at the time my wife needed a car and I could not afford the financed payments to buy it. So leasing was the only option, also did not have good enough credit to get decent rates to finance a cheap used car.

The leased car only has less than a year left on it, I did not feel at the time having one car would work in my situation, as well the car would have shown "discharged in bankruptcy" and would be a negative on my credit report(s), which my credit cards included are showing and some of which will be on my reports till 2019.

I signed two legal documents with Ford Credit for both cars, both my attorney and Ford's signed both, but like I said only the financed car was brought before a judge who approved it. Both show in Pacer as well, but yes from what I read only the financed car is truly "reaffirmed" because the judge approved it. Possibly there was a no due cause by Ford or the courts to bother with the leased car since it will soon end?

I have disputed the record with all three credit agencies, as of this morning TransUnion sent me an update and they removed the leased car from my credit report entirely, which I thought was odd since I thought this would be a plus on my credit report. The financed car was updated to show "Reaffirmed" and not included in the BK. So it now shows correctly. 1 down 2 to go.