Reaffirm Car

[tazzy20176]

Should I reaffirm my car loan if I've never been late and the current value is around the same amount that I owe?

[Tbornetun]

I would keep making the payments (if you can afford them) but DO NOT sign a reaffirmation agreement. The only one that benefits from a reaff is the creditor. They are essentially locking you into your loan as if the bankruptcy never happened.

[TEW]

You don't have to reaffirm the car loan unless your state requires it. If you don’t have to don’t do it but keep up the payments and you can keep the car. The bank CAN repo the car but it would be foolish for them to do so. It would end up coasting them more money. Then just letting you keep it and make the payment.

[laurannm]

Check the repo laws in your state. Most allow you to keep a car as long as you remain current, regardless if you sign a reaffirm

[RedLight]

Some states like TX force you to reaffirm your auto loans but not the mortgage. Weird I know, but what can you do?

[KP1980]

I personally choose to reaffirm on my loans because they are joint accounts. I was also afraid of my intrest rate going up after the bankruptcy; if that could happen.

[texanboy76]

I personally choose to reaffirm on my loans because they are joint accounts. I was also afraid of my intrest rate going up after the bankruptcy; if that could happen.

did your wife have to sign anything on the reaffirm? Was that something that you just did on your own or is their paperwork she needs to fill out?

[RedLight]

[danaf]

I would not recommend reaffirming a car - under any circumstance and especially in this economy. Reaffirming only benefits the lender - not us. Some people reaffirm out of fear of having their car repo'd. Some do it because they think it will help them rebuild their credit (this is true provided the lender reports). But at the end of the day - if you are paying on time, the banks are still making their money and that is what they want. I did not reaffirm. I've had no problem with the CU who I pay on time every month. If I should lose my job and become unable to pay - God forbid - then not reaffirming and not being dinged for having to give up the car would be one of the best decisions I made during my bk process. Look around - the car dealerships and the banks are hurting right now. There is absolutely no good reason to reaffirm.

[debtmonster]

I would not recommend reaffirming a car - under any circumstance and especially in this economy. Reaffirming only benefits the lender - not us. Some people reaffirm out of fear of having their car repo'd. Some do it because they think it will help them rebuild their credit (this is true provided the lender reports). But at the end of the day - if you are paying on time, the banks are still making their money and that is what they want. I did not reaffirm. I've had no problem with the CU who I pay on time every month. If I should lose my job and become unable to pay - God forbid - then not reaffirming and not being dinged for having to give up the car would be one of the best decisions I made during my bk process. Look around - the car dealerships and the banks are hurting right now. There is absolutely no good reason to reaffirm.

I second that!

I just heard a radio commercial the other day about some Mazda dealership in Orlando selling a loaded, brand new Mazda 3 for $10,900. I've NEVER heard of brand new Mazda 3's going that cheap. Most of the time I see them around $17k and up.

Always GIVE THOSE THINGS BACK! There's always better and cheaper now. You might as well take advantage of the bankruptcy perks to the max.

My wife keeps saying she wants to keep the cars as well. If I keep my car, I will be paying $14k back on it. It's worth maybe $6-7k today. It's a 2 year old car with 63,000 miles on it.

[RedLight]

[Cali]

I reaffirmed because I knew we could afford it and I knew we wanted to keep the truck.

[DisneyGirl]

We reaffirmed our car loan back when we filed but the car was almost paid off at the time too.

[TEW]

I personally choose to reaffirm on my loans because they are joint accounts. I was also afraid of my intrest rate going up after the bankruptcy; if that could happen.

Can you explain how that can happen if the bank is enjoined from ever collecting the debt?

[AngelinaCat]

We reaffirmed our car, because we knew we were going to keep it and could make the payments. Plus, our CU required us to. This CU is one that 'Hub had been a member of for 40 years, and being loyal like he is, wanted to keep the membership.