Chrysler & Chase

[seanf12]

Anyone currently doing a ride-through with either Chrysler or Chase? I know when the new laws first came out Chrysler cracked down hard on debtors who did not reaffirm, but have since backed off. I currently have a leased vehicle with them.

[seanf12]

bump

Particularly with Chrysler...I've read some horror stories about them repo-ing if you don't reaffirm, but maybe theyhave since stopped that practice?

Thanks

[PaKettle]

Cant say for sure with Chrysler and Chase but my attorney said that at first there were some lenders who were playing hard ball but now almost none of the major lenders object to ride throughs.

Ask your attorney?

I must say that I don't really see anything that wrong with reaffirming. My attorney said "By not reaffirming you can "walk away" from the loan if need be. But for the life of me I can't come up with a scenario in which I would need to.

Insurance would pay for replacing it if I wreck it so that is not a scenario in which I'd walk away from it.

Not being able to make payments is also not a scenario as I would sell it and make a thousand or two profit on it...

So really I can't see the advantage of not reaffirming even though everyone says not to.

[erinmi]

Ford played hardball with us but I think it was only because we were a little late with our payment and our case hadn't (and hasn't! 66 days and counting!) been discharged.

They filed a motion for relief from stay and in order to get them to stop, we HAD to sign a reaffirmation on the car.

Chase has done nothing and we have paid a few days late with them too.

[oldrocker]

Ford played hardball with us but I think it was only because we were a little late with our payment and our case hadn't (and hasn't! 66 days and counting!) been discharged.

They filed a motion for relief from stay and in order to get them to stop, we HAD to sign a reaffirmation on the car.

Never been late on my Ford (pickup), but lawyer said if I want to keep it I will have to reaffirm or Ford will repo it, even if current on payments.

[Minnymouth]

Some companies are now forcing you to reaffirm if you wish to keep the home or auto...... They want to guarantee payment or possible liens in the future. They don't want to be in a position where you can just walk away later and stick them with it......

[lrprn]

Never been late on my Ford (pickup), but lawyer said if I want to keep it I will have to reaffirm or Ford will repo it, even if current on payments.

Frankly it's in Ford's best interests to allow you to pay off the loan. If they repossess they are almost certain to lose money. Why would they do that?

Here's the reason - fear and (no surprise) an overall increased income stream. See http://www.doanlaw.com/blog/?p=11 for an excellent discussion and explanation of why when the current 2005 bk law went into effect, Ford and Chrysler started repossessing cars without reaffirmation agreements (although recently the legal tide is turning in the debtor's favor....stay tuned....)

Some states by law do not allow repossession of any asset at any time if the payments are up to date. Given your lawyers' advice it's doubtful yours is one of those, but it's a good idea to find out for sure.

[seanf12]

thanks everyone....yep, according to my lawyer our state is one of those states that does not allow repo unless you are behind on payments (Massachusetts). I think I read an article somewhere else that mentioned the same thing.

Got me thinking though...my lawyer does not recommend reaffirms at all (almost borderline refuses to sign one even if we wanted one) and has stated that a judge would probably not approve the agreement anyways since we are showing negative.

However, what if a lender (house or car) absolutely insists on a reaffirm or else they will repo/foreclose? Can an attorney refuse to sign an agreement, and can the judge still deny it?

[wilbur4321]

However, what if a lender (house or car) absolutely insists on a reaffirm or else they will repo/foreclose? Can an attorney refuse to sign an agreement, and can the judge still deny it?

If your state doesn't allow repo if payments are current, why would you want to sign a re-affirmation? What hardball could they play -- unless you are not current, in which case they might not offer a re-affirmation anyways, no?

--randy

[CindyLou]

call your lender, ask for the BK department and find out their policy. That is the best way to find out.

[seanf12]

I'm not planning on doing the reaffirm, it was more of a curiosity question.

Good idea....I did just call Chrysler and they have told me it's a state-by-state basis, which I took to mean that if your state doesn't allow repo unless you are behind, then they won't bother with the reaffirm. I called both my home lenders as well and they have told that they allow ride-throughs.

I'll have to give Chase a call, but seems like just about everyone on here who has Chase has had no problem

[Heather_NNJ]

CHASE - I filed Chapter 7 on 3/17/08. I saw on Pacer that Chase was one of my creditors that were notified of my bankruptcy filing electronically. 2 weeks later I notified Chase that I filed Chap 7 and asked about reaffirming my vehicle (I did this through their website via e-mail). They provided me with the number for their Bankruptcy Dept. The women I spoke with was super nice and had told me that they had already mailed out the reaffirmation agreement...which I received in yesterday's mail.

The agreement was pretty cut and dry. However, after reading some of the responses here, I now wonder whether I should sign it. I read above that certain States have laws protecting the consumer from repos if their payments are being made on time. I'm wondering if I live in one of those States - New Jersey.

Thanks!!!

[megadebt]

Best bet is to check with your attorney.

[danaf]

I wonder how one could find out if they don't have an attorney? (if they are in a state that doesn't allow repos if they are up to date on payments). Calling the actual lender isn't always optimal.

[seanf12]

Even if you don't have a lawyer, call one up for a free consult. Even if you are looking to go pro se you can at least get an idea of what to expect