Ride-throughs

[jason1277]

Good afternoon!

I apologize in advance because I know this topic has been beaten to death, but I am still a little nervous on the reaffirm vs. ride-through. I completely understand why you don't want to do a reaffirm, and as I have stated in a previous post I am not even sure my lawyer would sign the reaffirm.

That being said, is there anyone on these boards who has filed in the past year or two and is currently doing a ride-through with their home and/or auto? I am curious if any issues have arisen or if nothing has changed and you have been making payments as usual.

Thanks

[PaKettle]

Good afternoon!

I apologize in advance because I know this topic has been beaten to death, but I am still a little nervous on the reaffirm vs. ride-through. I completely understand why you don't want to do a reaffirm, and as I have stated in a previous post I am not even sure my lawyer would sign the reaffirm.

That being said, is there anyone on these boards who has filed in the past year or two and is currently doing a ride-through with their home and/or auto? I am curious if any issues have arisen or if nothing has changed and you have been making payments as usual.

Thanks

I got my discharge a little over a month ago.

I paid the car payment via mail during the bankruptcy because the Finance Co (a major car dealer bank) did not send me bills nor allow me to continue using the web site to pay them during that period.

A few weeks after I got the discharge they allowed me to use the website to make payments again. This indicates to me that they are okay with what I am doing. (I have not used the site to make payments, I am making them via Bill Pay through my bank, because I am a little paranoid that using their site to pay might give them some kind of right to say that I am reaffirming when I'm not.)

But anyway, they seem fine with me now and I just make VERY sure I pay them each month. Some day I'm going to call them and ask if I can pay a month ahead so that if I accidentally pay late one month, they won't begin repossession on my car.

Personally I don't see the problem with reaffirming, though, and I kind of almost wish I'd reaffirmed because it would take out the fear of forgetting to pay on time.

They say "You can walk away from it" if you don't reaffirm. But under what circumstances would anyone do that? The car is Insured to cover any losses, and you can always sell it for a profit once you have some equity in it. So why would anyone "walk away" from it?

[seanf12]

There certainly seems to be pros and cons to both. I am in a similar situation as the OP, where I am not sure my lawyer would be willing to sign.

[danaf]

I can think of one extemely good reason not to reaffirm. Say - in a year after bk one looses their job and cannot pay. It happens all the time. I have been a victim of cutbacks and layoffs in the past. I'd most definately rather do the ride through. You have to think of what is in your best interest. The loaner will of course want you to reaffirm because it is in their best interest. And if you do reaffirm, they are supposed to report favorably to the credit bureaus but most do not. Being able to walk away in case of an unforseen negative financial event in your life - priceless. You can rebuild your credit in other ways. That's my opinion.

[PaKettle]

I can think of one extemely good reason not to reaffirm. Say - in a year after bk one looses their job and cannot pay. It happens all the time. I have been a victim of cutbacks and layoffs in the past. I'd most definately rather do the ride through. You have to think of what is in your best interest. The loaner will of course want you to reaffirm because it is in their best interest. And if you do reaffirm, they are supposed to report favorably to the credit bureaus but most do not. Being able to walk away in case of an unforseen negative financial event in your life - priceless. You can rebuild your credit in other ways. That's my opinion.

So you lose your job and cannot make your payment...
Wouldn't you likely have some equity in the car, sell it, and buy a new one that you could afford?

You can't just not have a car (in most areas of the country)...

And why would you walk away from a car you have equity in?
(Now, if you have no equity in your car, then it might be worth it not to reaffirm...)

[jason1277]

How about a home in this scenario? It's interesting because the majority of reaffirm postings you find on the web deal with cars and not necessarily mortgages. Is that because most people are surrendering their home due to other circumstances (such as resetting ARM, job loss, upside down, etc.) or is that because foreclosure is a little more complicated than a repo and most mortgage companies have no problem with a ride-through?

[needafreshstart]

I did a ride-through on my vehicle, discharged in January. I have not paid my April payment which was due April 1st. I have decided to let the bank take back my SUV and have already purchased a economy car. I'm anxious to see how long before they come take my SUV.

[jason1277]

Great, thanks. Were you upside down on the SUV when you did the ride-through? Who was your lender if I may ask? I can send a private message if you like

[Teddy]

PAkettle - I'm thinking that there are lots of people (myself included) who are very much upside down in their vehicles - that would be why we would not want to reaffirm. We have no equity. If my car got totaled today, I'm not sure I'd get enough insurance money to pay back the loan.

[needafreshstart]

I was upside down and it is thru US Bank

[PaKettle]

PAkettle - I'm thinking that there are lots of people (myself included) who are very much upside down in their vehicles - that would be why we would not want to reaffirm. We have no equity. If my car got totaled today, I'm not sure I'd get enough insurance money to pay back the loan.

That's what I thought - that only people who are upside down on their cars (owe more than the car is worth/ have no equity in the car) would really benefit by not reaffirming.

In my case I honestly think I'd have been better off reaffirming - I had about $2k equity in the car by the time I filed Ch. 7. So in a case where the debtor has equity in the car, then, there is little reason NOT to reaffirm as I see it. The reason I wish I had reaffirmed is that I think when you reaffirm they are less likely to repo it if you are just a few weeks late on the payment.

Anyone know if that's the case, or is my thinking flawed on that?

Another question:
Now that I am discharged is there any chance I can get them to start sending me a paper bill again? (I'd like to have it just as a reminder that I owe.)

[TroubleinCalif]

That's what I thought - that only people who are upside down on their cars (owe more than the car is worth/ have no equity in the car) would really benefit by not reaffirming.

In my case I honestly think I'd have been better off reaffirming - I had about $2k equity in the car by the time I filed Ch. 7. So in a case where the debtor has equity in the car, then, there is little reason NOT to reaffirm as I see it. The reason I wish I had reaffirmed is that I think when you reaffirm they are less likely to repo it if you are just a few weeks late on the payment.

Anyone know if that's the case, or is my thinking flawed on that?

Another question:
Now that I am discharged is there any chance I can get them to start sending me a paper bill again? (I'd like to have it just as a reminder that I owe.)

Lots of good questions about this subject......


other question's i would ask is,

If you don't re-affirm, Is the loan company going to be ok no matter what if you dont sign it and keep making payments? Do they always automaticaly go along with it?

Also, Lets say that after im discharged and im making payments and all is ok, then a year from now for what ever reason, i decide that im done with the car and let them take it. Since it was included in the 7, can they turn around and hit the Credit report as a repo or was that all takin care of in the 7 and its thier loss....

Dont mean to high jack but since we are on the same subject....

Thanks,

[PaKettle]

Lots of good questions about this subject......


other question's i would ask is,

If you don't re-affirm, Is the loan company going to be ok no matter what if you dont sign it and keep making payments? Do they always automaticaly go along with it?

Also, Lets say that after im discharged and im making payments and all is ok, then a year from now for what ever reason, i decide that im done with the car and let them take it. Since it was included in the 7, can they turn around and hit the Credit report as a repo or was that all takin care of in the 7 and its thier loss....

Dont mean to high jack but since we are on the same subject....

Thanks,

Most companies these days DO go along with ride throughs on auto loans. My attorney says he has yet to hear of one who does not.

As to your second question, no, that's the whole idea of the ride through. If you decide you are done with the car and don't want to make payments and don't have enough equity in it to come out ahead by selling it, then you can walk away from it without a hit to your credit report. It's their loss. But I assume that if you do sell it, you have to pay off the loan with the money...

[TroubleinCalif]

Most companies these days DO go along with ride throughs on auto loans. My attorney says he has yet to hear of one who does not.

As to your second question, no, that's the whole idea of the ride through. If you decide you are done with the car and don't want to make payments and don't have enough equity in it to come out ahead by selling it, then you can walk away from it without a hit to your credit report. It's their loss. But I assume that if you do sell it, you have to pay off the loan with the money...

Thanks for the reply PaKettle,

Much appreciated.