Ride Thru Done Rode Thru Now...

[unclejay]

In 2002 I was discharged Ch 7, with a $ 120,000 ride-thru on a motor home. Since then Ive made payments on time, but the loan is now so far upside down it isn't worth it and I'm trying to figure out what to do. My credit score is almost 700 and I hate to trash it, but cant pay $ 1100/month for the ride any more... buying a house.

I'm wondering if I surrender the motor home, can I challenge the resulting nasty credit ding on the grounds that the account was discharged and should be listed as 'Included in bankruptcy' ?

It is with GE Financial, which is not known for consumer friendliness. I could also ask them to cram down the principal, I guess.. lots of luck.

I'm also assuming they cant come after me for the loan balance.

[cj0203]

If it was listed in the bankruptcy, I'm pretty sure they cannot come after you for the balance. as for the credit reporting; i would think since they already listed it as IIB, they can't report anything else on it, but I'm not sure so hopefully someone here has a better idea.

Good luck!

[sharksfan]

I second the above post.

If you did not reaffirm the loan then all you need to do is call the lender and tell them to come pick it up!

[CindyLou]

I did a ride through on a car with ford motor. I surrendered it one year later. It was very easy. I called them up and they sent out the repo guy to meet me and get the keys. I did get a notice of balance when it went to auction, but they told me it was routine and not to worry cuz I didn't owe it. My entry on my credit reports never changed and continue to say IIB to this day. I still have another vehichle financed with them also!

[CindyLou]

P.S. I was never late on a payment. I just decided I was upside down and wanted a new car.

[JRScott]

So long as you didn't sign any reaffirmation papers then you should be fine.

[DivorceRuinedMe]

Does the same principal apply with a house? As in, if you don't reaffirm a house and you continue to make payments and then just one day decide you don't want it anymore you can walk away and it won't affect the credit again?

[JRScott]

Does the same principal apply with a house? As in, if you don't reaffirm a house and you continue to make payments and then just one day decide you don't want it anymore you can walk away and it won't affect the credit again?

Yes, it should work that way. Though you'd probably need to make sure by keeping an eye on your credit report.

[danaf]

My car payment is part of my expenses. If I don't reaffirm, then how will the trustee approve the bk? I mean, if they don't see an intent to reaffirm the car, would they just think that the money I was using to pay the car would be disposable?

[PaKettle]

My car payment is part of my expenses. If I don't reaffirm, then how will the trustee approve the bk? I mean, if they don't see an intent to reaffirm the car, would they just think that the money I was using to pay the car would be disposable?

I had that situation and it was not an issue. I assume it still counts as an expense since you ARE paying it.

[danaf]

so pakettle, then your attorney didn't have you do a statement of reaffirmation or intention of reaffirmation? Cause I'm reading two different things in various posts. 1. to do the intention and never follow through, 2. to not do it at all.

[Boscoe]

If you filed bk in 2002 and you did a ride through and this debt was discharged, they only have 7 years to report this.....

meaning that even if you walked away today, they could only report it until 09 when it would fall off..............

[JRScott]

so pakettle, then your attorney didn't have you do a statement of reaffirmation or intention of reaffirmation? Cause I'm reading two different things in various posts. 1. to do the intention and never follow through, 2. to not do it at all.

If you reaffirm the debt then you are legally obligated to pay for it. Officially and legally in the current bk code you have to reaffirm or surrender. However many jurisdictions have continued to allow ride through. This is largely dependent on the jurisdiction you live in and the creditor though.

The main reason many lawyers and judges are leery of approving reaffirmations under the new system is that they both have to sign it saying that it would not create an undue burden to continue the debt. It has not yet been tested but many feel that this could make them liable if you fail to follow through.