Did not get Reaffirmation done in time

[jast]

I got discharged witch is great news but one little problem. My lawyer office seemed to have some problems getting the reaff. I had to call about it twice to get them to request it. Then there was some kind of mailing problem long story short I got it about a week before my discharge date. I had no clue I had to get it in before then no one ever told me. Now Toyota will not take it unless my case is reopened and they lawyer wants $260 to do that I think they should do it free or at lest at half price. My question is do I really need a reaff is it worth fighting we my lawyer to get it done?

[JRScott]

Well it is normal cost to reopen a bk case I think.

However depending on your state laws you may not need the reaffirmation at all. So long as you continue to make on time payments, just don't be late.

In a way its to your benefit, if you have to walk away on the car later you owe nothing without the reaffirmation.

[Priceless ProSe]

Well it is normal cost to reopen a bk case I think.

However depending on your state laws you may not need the reaffirmation at all. So long as you continue to make on time payments, just don't be late.

In a way its to your benefit, if you have to walk away on the car later you owe nothing without the reaffirmation.

Just had a similar discussion about this. My question is, what would keep the bank from taking the car once he/she had some equity built up in it? If there is no reaffirmation then technically the bank can come and get it whenever they feel like. And banks are in business to make money, so one might assume they would let you pay until it was profitable for them to come and get your ride. Is there anythin that specifically prohibits this, or are we depending on the banks sense of moral rightness?

Might be worth 260 not to have to worry if your car is gonna dissapear one night, or maybe youll get a letter in the mail one day asking you to surrender it.

[deafbroke]

Just had a similar discussion about this. My question is, what would keep the bank from taking the car once he/she had some equity built up in it? If there is no reaffirmation then technically the bank can come and get it whenever they feel like. And banks are in business to make money, so one might assume they would let you pay until it was profitable for them to come and get your ride. Is there anythin that specifically prohibits this, or are we depending on the banks sense of moral rightness?

Might be worth 260 not to have to worry if your car is gonna dissapear one night, or maybe youll get a letter in the mail one day asking you to surrender it.

Banks are in business to LOAN money. They would not want to just come take your car because you have some equity in it. Reaffirming is a mistake. If you did end up signing the papers, then the car dies, you would still be liable for the loan. The lawyer did you a big favor in my opinion.
Worst case just get another car. Never,ever ,come hell or high water, reaffirm.

DB

[justplaintired]

There are alot of post on reaffirming on this forum. Most say not to. There is no advantage to signing this paper other then to the lender. We were all set to reaffirm our house and now, we won't pursue it. They really only want their money and as long as you make these payments, you should be fine from what I have read. Also many threads say, even if you do reaffirm that is no promise they will report you payments on your credit report. Does your attorney advise you to do this?

[Priceless ProSe]

Banks are in business to LOAN money. They would not want to just come take your car because you have some equity in it. Reaffirming is a mistake. If you did end up signing the papers, then the car dies, you would still be liable for the loan. The lawyer did you a big favor in my opinion.
Worst case just get another car. Never,ever ,come hell or high water, reaffirm.

DB

Yes to loan money, but only to make a profit. If you had a car worth 20k, only owed 5k on it, and no agreement other than the one that was broken in BK...well im not saying they would take it for sure, but I would bet dollars to doughnuts its happened before.

[Priceless ProSe]

There are alot of post on reaffirming on this forum. Most say not to. There is no advantage to signing this paper other then to the lender. We were all set to reaffirm our house and now, we won't pursue it. They really only want their money and as long as you make these payments, you should be fine from what I have read. Also many threads say, even if you do reaffirm that is no promise they will report you payments on your credit report. Does your attorney advise you to do this?

[JRScott]

Some state laws prevent them from repossessing even if you fail to reaffirm so long as payments are made on time, the key is that you can't be late or miss a payment or yes they can come get it.

[Priceless ProSe]

Some state laws prevent them from repossessing even if you fail to reaffirm so long as payments are made on time, the key is that you can't be late or miss a payment or yes they can come get it.

I guess the million dollar question (for this guy/gal) would be how about my state? I was wondering as well how this relates to houses, i mean, is the law specific to some type of property? thanks for the info BTW

[gymbo]

This is a great thread considering so many people on this forum say never reaffirm. I'd love to hear from others who had a car repo'd or a house foreclosed even if they were current on payments. Seems crazy...

[Priceless ProSe]

Check this out

http://www.abanet.org/buslaw/blt/8-1debt.html

Seems to be good news. I would still like to see some specific case law where a court denied the banks right to take someones house post BK (assuming they were trying to do a ride through) before I ould try anything like that. Someones opinion is reassuring, but we want the facts, right?

[JRScott]

I'm not sure anyone has put it to the test yet since the new laws, I've not heard of anyone on these boards who were current who lost their vehicle because they did not reaffirm, now they could be out there and this would be a good time to hear.

I don't know if CA does or not, I'd ask your lawyer.

[jast]

Ok I just want to make sure I understand as long as I pay they should not come get the car because it is not in there best interested to do so. I can work on fixing my credit and then later if I want I can just dump the car since it has been discharged and get a new one?

[Priceless ProSe]

Court ruling on "ride through"

http://www.newyorkbankruptcylitigation.com/2007/03/19/eastern-district-of-pennsylvania-rules-ride-through-is-not-an-option/

It seems rare that the auto company does this, and by the few articles I have read it seems limited to american lenders. Also, the decisions seem to vary from court to court. The one thing that always drove me crazy about law is, they can only make a decision or explain something if its presented to them in a case. They cant just go out and clarify things, that would be crazy right? (I do understand why they cannot do this, the whole balance of power between the three branches, but its still frustrating when you cant get a straight answer).

Also, seems texas is not ride through friendly,
"Note that Texas, unlike California, does not permit a debtor to allow the secured creditor’s lien to simply “ride through” the bankruptcy process absent reaffirmation or redemption. Johnson v. Sun Fin. Co. (In re Johnson), 89 F.3d 249 (5th Cir. 1996) (per curiam) (no retention of collateral without reaffirmation or redemption)." although this judgemnt is a decade old and may have since been changed (by diff case)

And here a BK court in Idaho agreed to termiinate automatic stay, but would not rule on letting the finance company forclose/repo thus allowing the debtor to "ride through", (If you read the whole thing your head will explode!) http://cache.search.yahoo-ht2.akadns...icp=1&.intl=us

[Help!]

Well it is normal cost to reopen a bk case I think.

However depending on your state laws you may not need the reaffirmation at all. So long as you continue to make on time payments, just don't be late.

In a way its to your benefit, if you have to walk away on the car later you owe nothing without the reaffirmation.

I agree. Maybe this happened for a reason...