Received reaffirmation and question...

[Stilltheone]

Hi all~

I finally received my reaffirmation agreement for American General Finance for some furniture that I purchased in January. Originally, my lawyer wanted to reaffirm us for $750...the current value of the furniture.

In the agreement I received today, it states the balance they want to reaffirm us at is $958 and some change. They basically took our beginning balance and minused every payment we made to them. They erased our interest that piled on in March and it looks like there isn't any interest in the future.

First, if I don't sign the reaffirmation agreement and don't make payments, will they actually come and get my furniture? In the letter from my lawyer, it states that if we don't sign, be prepared to give up our property...So, I'm curious if they will actually come and get it since it's such a small amount.

Second, I don't want to sign the reaffirmation agreement for more than the furniture is worth....but I do want to keep my furniture. Has anyone ever "renegotiated" a reaffirmation? (I know, say that 3 times fast!)

Thanks for all your help!

[deafbroke]

In my opinion, I wouldn't sign it. Let them come and take it. You can always get used furniture to use for a while until you are in better shape to get new stuff. Don't let them stick you with more than is owed. It's their loss if you don't sign, not yours.


DB

[keepmine]

You can negotiate a better deal once the bk is discharged if, they even chose to pursue the matter. Nobody wants used consumer products.I'd not sugn and see what happens.

[sisterfunkhaus]

My lawyer told me no one ever comes and gets furniture back. She told me they will say they will to scare you. She said they are lucky to get $10. She advised me to hold out. I am prepared to replace it if need be, but I don't think they'll come for it.

[danaf]

oh hell no - just on principle alone. Do not sign that paperwork. Let them come and get it if that's what they want to do. And then buy very decent used stuff from craigslist.com at a fraction of the cost.

Or if you are really intent to keep the furniture as you said, just renegotiate the re-affirmation agreement. And make it worth your while. They will never sell used furniture for what you are paying. Let them know this and get the amount owed reduced to lower to what you owe or tell them to walk.

[Stilltheone]

oh hell no - just on principle alone. Do not sign that paperwork. Let them come and get it if that's what they want to do. And then buy very decent used stuff from craigslist.com at a fraction of the cost.

Or if you are really intent to keep the furniture as you said, just renegotiate the re-affirmation agreement. And make it worth your while. They will never sell used furniture for what you are paying. Let them know this and get the amount owed reduced to lower to what you owe or tell them to walk.

Our balance before we filed was actually $1400, but that included about $300+ worth of interest that they tacked on in March.

Also, another interesting tidbit....after reading through the reaffirmation, they have us scheduled for 21 monthly payments @ $40.90/mo....after doing the math, that comes out to $858.90...not the $900+ that is on the first page.

My husband and I have discussed it and if we do sign it, we're only making the requirement 21 payments...no more, since that's what's stated.

Normally, I would tell the creditor to stuff it, but I really love this furniture and don't want to lose it...I'm weak.

[HHM]

Don't be an idiot.

NEVER EVER sign a reaffirmation on furniture (or any other consumer asset).

[2confused]

What about a car that is 2,000 over in reaffirm...They are trying to charge the lawyer fees and for some reason haven't included much from the 5 payments i've made thus far for principal. It seems very difficult to get another car now that i've filed.

[HHM]

What about a car that is 2,000 over in reaffirm...They are trying to charge the lawyer fees and for some reason haven't included much from the 5 payments i've made thus far for principal. It seems very difficult to get another car now that i've filed.

How serious do you think they are about taking the car back if you do not reaffirm. Usually, most car finance companies will allow a ride-through. Thus, if they are threatening to take it, you need to assess how serious is that threat. (most of the time, it is empty threat).

As for things like, furniture, appliances, electronics, computers etc, NEVER sign a reaffirmation agreement no matter what they threaten. Also, NEVER sign a reaffirmation, for anything, when you are in a negative equity situation and will likely remain so for several years.

There are only 3 situations in which you would "consider" signing a reaff..

1. For a car on which you have favorable financing (i.e. 0% etc) and which has equity.

2. For a house with substantial equity, good financing, and an agreement from the mortgage co. to continue reporting favorably on your credit report.

3. On an unsecured debt to settle a possible objection to discharge.

[2confused]

HHM,I'm not sure how serious they are...or even if they have threatened it. It is my attorney who said they might not let me keep it if I don't reaffirm. I just got a reply on creditboard saying it's as good as gone...is this true. I am only 2 weeks late but do not plan on reaffirming (mainly based on your advise). i have decided to keep it as it is a Honda and will last a long time, plus i have a great rate. Should i bother to try to write up a new agreement after bk? or try to do a ride through? or do you think it's too late as it is a credit union and i am a little late (Have been in limbo...finally made up my mind that i want it, and then someone told me "it's as good as gone)

[2confused]

bump

[keepmine]

Well, if you are not making the payments, you'll lose the car in any event.
You are in bk. You are not paying any unsecured debt and you are still late in making a car payment. At first blush, it looks like you have something you can't afford. If that's the case, don't sign a reaffirmation agreement. If you do and you default, you are on the hook for a deficiency balance. If the CU will allow a ridethrough-do it.
One poster on CB gave you good advice. If you really want the car and, have the resources to make the payments going forward you need to be in front of a loan officer first thing Tuesday morning with the funds to get current.
If not-surrender the car and move on.

[2confused]

We can afford it...I was told by this wholesale guy not to make the payment because he can do way better, but have decided to forget about him and try to keep it. i just hope that being 2 weeks late doesn't make it so they won't work with me. i can pay even three months in advance...do you think they will give a me this chance?

[HHM]

Yep, you may have shot yourself in the foot by not making the payment on time. If you want to keep the car, you need to get it current. So far, it sounds like nothing much has happened, only your attorney has advised you that you should consider reaffirmation, but it does not sound like the company has approached you for the reaffirmation.

Creditboards gives decent advice about credit repair, but they give lousy advice about BK.

[2confused]

I guess we'll see on Tuesday...crossing my fingers.