Reaffirmation denied..now what

[whatamess]

When I met lawyer and paid up I was told we would be able to keep the car, no problems at all.
Now as we signed and are filing this week, he tells us he wont sign the reaffirmation because we are negative $250. I told him we are a family of five (includ elderly mother), with ONE car and no money to outright buy a new one, and I'd be willing to take down other monies to make it break even. Nope, no go.
He said to continue making payments, and the chances were about 25% of repo. Thats not cool with me though, we have no public transpo option and have to get to work, Dr. appointments, and the store. If we wake up to no car one day hubby would be fired for sure as a no show.
I budget every month, & I run a VERY tight ship and have a litle bit left over even, but these are the numbers he & the courts use..much higher than I spend!!! I thought it would be the other way around.
Ive never been late...he said if it was Ford it would be repo'd for sure...but its Toyota.
Anyone else have this happen? Im really upset now. I am wishing I lived in the city now....
WAM

[ilovemycaitybug]

I may be in a similar boat. We are negative on our schedules (around 50-60) and have a hearing for our reaffirmation as well. Our attorney signed the reaffirmation, and the creditor did as well. It was posted on PACER. But the court apparently disapproves or something because we got a notice of hearing on it.

My attorney said not to worry about the hearing, that as long as we keep paying on the car we will be able to keep it. I really don't know what I feel... one hand, I feel like getting out from under this loan (we're upside-down) would be a good thing. But on the other hand, we'd have to buy a new car since I commute about 30 miles to and from work... and the interest rate would probably be HORRENDOUS!

I am of the opinion that the creditor does not want to repo your car. They would have to sell it and get what they could out of it. They would probably much rather have you keep paying each month and you keep the car.

I hope everything works out for you. I think it will!

[familyof7]

You are NOT required by law to reaffirm. You can keep your car if you keep you payments current try not to be 1 day late and as long as you pay they can not repo if you get 1 day late they can but not until your bk is over or if they file a motion to lift the automatic stay so dont worry just continue to pay and you will be fine

[whatamess]

Now I have to call them and get a new address to send payments to right? Should I explain the situation? The lawyer wants to sit and wait until court, but I still need to send payments now right?
How does this work?
Does anyone know if Toytota plays nice about this ride through bit?
Lawyer said the only one he saw repo often on ride through was Ford.
WAM

[HHM]

You are NOT required by law to reaffirm. You can keep your car if you keep you payments current try not to be 1 day late and as long as you pay they can not repo if you get 1 day late they can but not until your bk is over or if they file a motion to lift the automatic stay so dont worry just continue to pay and you will be fine

Technically, that is not true anymore. The new BK law effectively did away with the "ride through" (i.e. debtor just continues to make the payments and all is good). However, as a practical matter, so long as the car finance company continues to get there money in the full amount and on-time, you have nothing to worry about (assuming you are already current on your payments).

Bottom line, simply continue to make your monthly car payment and you won't have a problem.

The reason the lawyer cannot sign the reaffirmation is because you are negative on your schedules. When an attorney signs a reaffirmation they are putting their butt on the line and affirming to the court that the payment amount would not be an undue hardship...you can imagine that making such a claim would be very difficult when a debtor is negative in their schedules.

[manglicmot]

I'm attempting a ride-thru on Ford right now, I have two weeks until the deadline for objections. My attorney told me that as long as I keep my payments current there will be no problem. Ford has been accepting my mailed in payments since I filed, so that's a good sign.

[whatamess]

Manglicmot,
are you still sending them to the same payment address or do you have a special bankruptcy one? I remember reading, and cant seem to locate through search that you need a new payment address.
Ive never been late on the car. I want it to stay that way too.
WAM

[manglicmot]

Manglicmot,
are you still sending them to the same payment address or do you have a special bankruptcy one? I remember reading, and cant seem to locate through search that you need a new payment address.
Ive never been late on the car. I want it to stay that way too.
WAM

I called them after I filed and they gave me a special 1-800 BK number to call, but the address they gave me to mail my payments is actually the regular mailing address. I reccomend calling just to make sure you get the correct address.

[whatamess]

Thanks M!
Good luck with your car too!
WAM

[CindyLou]

I did a ride through with Ford with no problems. In fact they told me they dont do reaff. in california??? Call and ask for the BK dept and they will tell you exactly what will happen

[manglicmot]

I did a ride through with Ford with no problems. In fact they told me they dont do reaff. in california??? Call and ask for the BK dept and they will tell you exactly what will happen

I see you filed in 05, was that under old law? When I called the BK number to get the address to mail payments they told me on the phone that they we sending a reaffirmation agreement to my attorney and that I would have to sign it in order to keep the car. I didn't respond to that, the less said the better.

[CATCHMEIFYOUCAN]

I had just bought a car with Hyundai .. Financed through Hyundai 30 days before I had to file. When they found out I filed BK, they sent me a post card, with a new payment address (their BK dept) and said it was my responsibility to keep up the payments by the 14th of every month (or else) and that I would no longer receive monthly statements. When my Bk was discharged, I got a letter from them stating that I could send in payments back to their regular finance address and since than I have receive monthly statements. I'm in the state of Virginia by the way, and I guess it depends on the finance company if they allow you to "ride through," or not.

Best of Luck, CMIYC