Reaffirm or not to Reaff...thats the Question

[hopefulrelief]

Help please! Someone tell me what to do, we are confused! We are scheduled for discharge around the 15th of June. We are have signed intent to reaffirm on both cars, both with toyota corp. One car we will absolutely keep...only owe 12 more payments. The other is pricey and we want to sell it as soon as we are discharged, may be a bit of equity in it and Lord knows we could use it! We have never been late on any payments and will not be but want to sell to free up some cash to start over!

We just received reaff papers. The wording from the attn is confusing:

"You may agree to reaffirm even though you have been discharged by the court. Usually this is done in order to retain certain property....

If you decide to reaffirm these particular debts, please sign the aggreements and return to the office. DO NOT DELAY, AS ALL REAFFIRMATION AGREEMENTS MUST BE FILED WITHT HE COURT BEFORE THE DISCHARGE IS GRANTED.

Remember that you are not required to reaffirm any of your debts. If you enter into these reaffirmation Agreements, you become liable upon the depts as if you had NEVER filed bankruptcy"

What the heck...it it an option or not!!! I am confused. We are in Missouri and our attny once said that in Mo you can not ride through any longer...than why does it say that we are not required...blah blah blah?? I would prefer to reaff on the older car we are surely keeping and not on the newer one 'just incase.' I don't anticipate defaulting but would feel better knowing if something happened that we wouldn't be liable for the loan balance.

Can you guys tell me what to do?? Thanks!
HR

[CindyLou]

Have you checked to make sure you have equity on the one you want to sell????? The wording is required by law so that you are fully aware that you are choosing to reaffirm. I would call Toyota and ask for the BK department. Be up front. Ask them if you can reafirm one and not the other. That sounds like the best option to me if you do not have equity.

[hopefulrelief]

Thanks for your reply! I think there could be some equity according to kelly/and local sales but am afraid how long it will take to sell. I guess I would just feel better knowing that if for some reason we couldn't sell fast and couldn't keep paying we could surrender the car without any backlash...

I will call Toyota just need some pointers first!!!

[Minnymouth]

Under the new laws, you may not have the option of not reaffirming ---- yet keeping the vehicles as long as you pay for them (thus if you decided to surrender at a later date you would not owe anything else on them)......

The new laws require "reaffirming" signed by you and the judge before the discharge date. Thus you then "know" you CANNOT go back and surrender the auto late and no owe anything...... you would owe the entire balance just like before bankruptcy....

Often like before the new laws, as long as you are making the payments many of the auto places will not say or do anything regarding reaffirming..... but larger companies will especially if they are new vehicles... also they have the option of coming and getting the vehicle after the discharge date.

Did you file pro-se or use an attorney? Your attorney needs to explain all of this to you......

[hopefulrelief]

We filed with an attorney. I have an email in to him but he is in court all day today. I will see what he says. We have talked about his before with him and at the time he said when we get the reaff papers in hand we can talk more about which way to go. Was just looking for opinions/experience. Does anyone think they would come after the car/s if we were paying? Hummm.