Can someone explain what happens when not reaffirming?

[katie]

We plan on keeping both vehicles and our house in Chapter 7, unless for some reason we can't. I have read and read the posts on here and understand the reasons for not reaffirming. My questions are:

1- Will we just continue to pay the current amount at the same number of payments due currently and then after it is paid in full - we receive the title? Just like the BK never happened (well, kind of I understand it still lists on credit report as IIB).

&/or

2- What if we decide to get another car for whatever reason in two years before it's paid off? Do we just turn in old vehicle at dealership and get new vehicle outright?

I'm just speaking hypothetically - I'm just trying to understand long term what happens with un-reaffirmed autos after discharged. I have searched the web but thought someone else here might be able to just to give clear cut answers without all of the confusion in reading the BK Code. My degree is not in law.

[AngelinaCatHub]

We plan on keeping both vehicles and our house in Chapter 7, unless for some reason we can't. I have read and read the posts on here and understand the reasons for not reaffirming. My questions are:

1- Will we just continue to pay the current amount at the same number of payments due currently and then after it is paid in full - we receive the title? Just like the BK never happened (well, kind of I understand it still lists on credit report as IIB). Yes.
&/or

2- What if we decide to get another car for whatever reason in two years before it's paid off? Do we just turn in old vehicle at dealership and get new vehicle outright? No way, how could they trust you if you unload an upside-down car and trade it for another? They are there to make income.

I'm just speaking hypothetically - I'm just trying to understand long term what happens with un-reaffirmed autos after discharged. I have searched the web but thought someone else here might be able to just to give clear cut answers without all of the confusion in reading the BK Code. My degree is not in law. OK, if you reaffirm you are stuck to pay out, if you "pay through, you can leave the car at any time. That does not mean abandon it and get a new or lesser value car.

I hope this helps you a bit. Bk is not a free ride and there are some consequences. 'Hub

[elkaholic]

From what I've read on here and from what my atty has advised me:

If you continue paying on a non-reaffirmed car loan the chances are very slim that the lender will try to repo the car from you-they're still getting their $ each month, so there's little point in making a problem where there isn't one.

However, at any time prior to the loan being paid in full, you can stop paying on it (or better yet, call the lienholder and advise them you are turning in the car, where do they want it brought to) and the lienholder has no recourse whatsoever. Once the car is turned in, then go get yourself a replacement-I would NOT take it to the dealership where you purchased it when turning back in to the lienholder.

I have no idea how your credit report will look in terms of the car loan that you've continued to pay on, kept current and did not include in the BK filing.

[AngelinaCatHub]

From what I've read on here and from what my atty has advised me:

If you continue paying on a non-reaffirmed car loan the chances are very slim that the lender will try to repo the car from you-they're still getting their $ each month, so there's little point in making a problem where there isn't one.

However, at any time prior to the loan being paid in full, you can stop paying on it (or better yet, call the lienholder and advise them you are turning in the car, where do they want it brought to) and the lienholder has no recourse whatsoever. Once the car is turned in, then go get yourself a replacement-I would NOT take it to the dealership where you purchased it when turning back in to the lienholder.

I have no idea how your credit report will look in terms of the car loan that you've continued to pay on, kept current and did not include in the BK filing.

Very good response. I did not see where the OP stated he/she did not include it in the bk papers. It should be if it wasn't done. However, good retort. 'Hub

[katie]

Thanks to both of you. That is exactly what I was looking for.