What happens to my car if the loan company doesn't reaffirm?

[DopeyDwarf]

We have not heard from the bank financing my car loan. We wanted to reaffirm both cars, because we need both cars. No bus for my kids to get school, none to get to work, too far to walk to either. Do I just keep paying my car payments? The receptionist at the lawyer's office (who basically does all the work, it seems!!) said just make payments, and see if they show up at the 341 meeting. Will they take my car?

[RedLight]

Have you filled out the reaffirmation agreements? Did you get them from the auto lenders? Also, are both of your cars in really good shape? I ask this because if you default on them in the future, they can and will sue you for the deficiency.

I did not reaffirm either of my cars and I am glad that I didn't. We will be discharged in 11 days...so happy. And, we still have the cars. In today's market, it is extremely unlikely that they would take the cars if you are current on payments, they want their interest. But, you never know.

I know many people here will tell you not to reaffirm, and I agree, but only you can know what is best for you and your family. Good luck with whatever decision you make.

[magyar123]

I never reaffirmed my car loan back in 2004. Just kept on making regular monthly payments. Actually my attorney advised me not to reaffirm it.

[DopeyDwarf]

Thanks, I am glad they probably won't take my car!!! I am basically current on payments, other than deferring a couple payments for a $15 fee, 2 times, but that was throught their offers only, so yes, I guess I am current. One car we did sign reaffirmation papers, the payment was lowered $50 a month on that car. Thanks everyone.

[magyar123]

Thanks, I am glad they probably won't take my car!!! I am basically current on payments, other than deferring a couple payments for a $15 fee, 2 times, but that was throught their offers only, so yes, I guess I am current. One car we did sign reaffirmation papers, the payment was lowered $50 a month on that car. Thanks everyone.

But please be careful about making timely payments if/when you don't reaffirm. So far they let you get away with two late payments and assessing you $15 fees. Next time around they might not be so nice. You don't want to wake up one day with a repo guy banging on your door telling you that the car is repo'd, and haul it off.

[TEW]

I have not nor would I reaffirm anything.

[DopeyDwarf]

I didn't make any late payments - ever. They send offers to defer payments (usually around the holidays) where they will defer your payment until the end of your loan, for a $15 processing fee. Never had a late or missed payment.

Question:

Don't you HAVE TO reaffirm the loan if the loan company proposes it, if you want to keep the car?

I figured we had to sign the papers, so we did, was just concerned because my car is the car we use most and that is the car that was not reaffirmed.

[yeahdischarged]

Keep an eye on your filing. If the lender does not get the reaffirmation papers filed in time, you won't be reaffirmed. (That is a good thing!).

We had a car lender who required us to reaffirm. At the time, I was desperate to reaffirm and protect our vehicle. Lawyer advised against it, but I wasn't hearing any of that.

We filled out all papers and lawyer sent it back to the lender. However, the lender did not get the papers filed in time. So in the end, we were not reaffirmed. We gave the vehicle back, we owed nothing further - no liability whatsoever, and nothing changed on our credit report. It just said "IIB - included in bankruptcy".

We just continued to make the payments and everything was fine. When the vehicle started to fall apart and have major problems with potential bills astronomical, we elected to give the vehicle back to the lender. Because the loan was never reaffirmed, we did not legally owe any money on it. We simply were doing a "ride-through", where if we continued to make the payments, the bank was happy.

In the end, had we been reaffirmed, we would have been screwed just several months after discharge.

It's hard to wrap your head around, but reaffirmations "can" prevent the true "fresh start" bankruptcy allows. Some lenders do not give you a choice, but if you have one, I say don't do it.

Good luck.

[bkchap7filer]

I'm a bit confused by "yeahdischarged" reply. I thought the process was that the lender proposed the Reaffirmation, the filer chooses to sign and then the attorney for the filer submits it to the court and provides a copy to the lender. Is this not the right process? I didn't think the lender filed anything with the court for the reaff and the filer (or attorney) did it. Please help me understand.

[yeahdischarged]

I am not sure about all states, but in my former state, the attorney sends the signed paperwork back to the lender. It is then up to the lender to file it with the court. It's the lender's job to file their own paperwork from my understanding. The lawyer did not create the reaffirmation. The reaffirmation paperwork is created and is sent by the lender.

That would definitely be something to ask your attorney.

[InDebtNeedHelp]

Anyone know the policy for Ford Credit?

[StartingOver08]

Ford Credit will repossess vehicles even if you are current right after discharge without a reaffirmation agreement in place.

See this link:

http://www.************************/...-and-keep-pay/

Here is another one:

http://en.allexperts.com/q/Bankruptcy-Law-909/2008/11/secured-debt-filing-chapter-1.htm

[laurannm]

Ford Credit will repossess vehicles even if you are current right after discharge without a reaffirmation agreement in place.

See this link:

http://www.************************/...-and-keep-pay/

Here is another one:
http://en.allexperts.com/q/Bankruptc...-chapter-1.htm

Assuming you are not protected under state law, which in most states you are protected as long as you remain current

[bkchap7filer]

I can see on PACER that my attorney filed the agreement with the court, so then is there a filing that the lender is supposed to do as well? Yeahdischarged's experience just seems so different than mine. Yes, the lender proposes the reaffirmation, not the borrower, but I know my attorney filed the reaff with the court.

Just want to stay on top of things and ensure the lender isn't supposed to be doing something they aren't.......

[kuzam2]

What happens to my car if the loan company doesn't reaffirm?

I just went on Monday, for 341 hearing. My bankrupacy was ruled no asset case, I noted that my Lawyer did not say anything about reaffirming my car loan. So should I still make payments to loan company. I heared that if you don't reaffirm you can still pay, but they can not send you a bill or call you. Also what if I want to get a car that is cheaper then mine. I know mine was put into bankrupacy so can I just get the new loan and return my car to old car lender without issue.