Reaffirming car debt

[yossarian]

I filed chapter 7 bankruptcy in September and attempted to reaffirm a debt with Toyota on my car. I used a form provided by the court.

Shortly thereafter Toyota barred me form using its automated account system, and I spoke with a Toyota representative who informed me that Toyota does not acknowledge the form I filed with the court. She sent me a different form. In the mean time I have continued to make all monthly payments, but I have not completed the new form. The deadline for creditor objections was today.

Can I just continue making payments and keep the car without reaffirming? Are there any advantages or disadvantages to either approach? The car is probably worth a little less than I owe, but I want to keep it. Of course, eventually, it will be worth more than the balance on my loan?

I greatly appreciate any information.

[CATCHMEIFYOUCAN]

Reaffirmation

Thought this was an interesting article about reaffirmation since it comes through the post once in awhile, this came from a link i found offered i believe by "nyteflight" (close enough):

http://www.stretcher.com/index.cfm

[niteflytes]

Catchme...you've got a great memory!

niteflytes

[BK'd-Betty]

I have read, on another forum, of people who don't reaffirm and having their vehicles repo'd in spite of the fact that they have continued to make payments.

There was one guy over there that made the last payment, and 10 days later the creditor repo'd the car.

He was SOL because he never re-affirmed the debt.

And another who was making payments & current, but refused to reaffirm and Ford Motor Credit gave him 7 days to turn in the car because of his refusal to re-affirm.

It is my understand, from hours of reading and research that the creditor is under no obligation to you to hand over the title after the vehicle is paid for if you do not re-affirm. Just like you are not obligated to continue making payments till the end of the loan w/o re-affirmation. You can walk anytime - well apparently so can they.

I think most creditors don't operate like that and will allow you to keep making payments without repo-ing the car and will give the title over - but it's not guaranteed. Expect anything to happen without a re-affirmation.

I'm not expert and don't know the laws on this - just sharing what I have read.

I filed chapter 7 bankruptcy in September and attempted to reaffirm a debt with Toyota on my car. I used a form provided by the court.

Shortly thereafter Toyota barred me form using its automated account system, and I spoke with a Toyota representative who informed me that Toyota does not acknowledge the form I filed with the court. She sent me a different form. In the mean time I have continued to make all monthly payments, but I have not completed the new form. The deadline for creditor objections was today.

Can I just continue making payments and keep the car without reaffirming? Are there any advantages or disadvantages to either approach? The car is probably worth a little less than I owe, but I want to keep it. Of course, eventually, it will be worth more than the balance on my loan?

I greatly appreciate any information.

[lilgoose]

You might want to take a look at my post under Rebuilding Credit re: reaffirmation and credit......

Might make you think twice....wish we still had this option.

[SinkingFast]

Technically, under New Law, Ride Thru is not an option. That's basically what you're trying to do. Keep the car by keeping your payments current and not filing a signed Reaffirmation agreement with the Court.

New Law only allows for Redeem (pay for the car in full either personally or via a new loan), Surrender (give up the car), or Reaffirm (renew the note by signing an agreement that's filed with the Court).

If you try to Ride Thru, what happens will really depend on the Lender. Some Lenders are happily taking payments with no Reaffirmation agreement signed. Others aren't. Others are repossessing the cars.

[CATCHMEIFYOUCAN]

Riding Thru just depends on the State you reside in, and of course the creditor, I would get a letter IF you can from the creditor with some kind of statement, that it is ok to pay the car without re-affirmation.

I know when I bought my car Fairfax, Hyundai Dealer (state of VA) and Creditor sent me a statement after I filed BK that I should continue making payments ON TIME and that nothing else needed to be done, oh and they mentioned "we are not allowed to send you monthly statements."

Also seek the advice of your lawyer if you have one!

Good Luck, Catchmeifyoucan

[CindyLou]

Call your lender and just ask them what will happen. They will be up front. I did a ride through with Ford. They said they didn't care whether I reaffirmed or not as long as I made payments.