Reaffirmation Agreement? Do I need it?

[KT13]

I am SO extremely confused and lost and my attorney has been of little help.
Filed on 11/21/08.
Had the 341 on 12/31/08.
I received a reaff agreement from my credit union early January.
Called my attorney and asked him what this was all about - he gave me a run around answer which for the most part concluded with him telling me its "against his religion" to do them but if I wanted to, it would cost me an additional $200 AND the possibility of going to a hearing and thus cost me even more than I had initially paid him to file the bankruptcy (rougly $3000). I tried to ask questions to get a better understand of what he meant - he really gave me nothing. I've emailed him questions - I get short one sentence answers - my last email to him a week ago has been ignored thusfar. Seems to me like he's gotten his money and is done with this/me. Done alot of research myself, including posting questions to a legal forum - still lost.

My question is this: WHAT do I do??
I owe roughly $2000 and change left on my car loan (originally $15k) - which I have been paying in a timely manner. Never missed a payment, etc.
KBB said the value is $13K.
From what I'm reading..if the atty. doesn't sign/certify it....and I submit it anyways, i'll end up going to a hearing and then hope they deny me and thus not have my car repo'ed. Is this correct?
Do I want to do this??
The atty says that if I just keep making payments as I have been..likely they won't repo my car. He suggests hiding it and looking over my shoulder though - just in case. Wow. I really don't want to live like this.
He also says he cannot promise they won't take my car. He also says that IF I file the agreement.. it will only draw attention to me.

If I do have to go to a hearing on my own - I wouldn't know the first thing to do or say!

Should I simply contact my CU and ask them what I can do to ensure they won't repo my car?? Or will calling them draw attention to me and then the possibility of them repo'ing?

Lastly.. IF I don't file.. and IF I keep making payments.. and IF I make it thru my discharge date (May)... and IF the payments are not yet finished.. should I/could I.. just "hide" my car... i.e.. switch with a friend for a while..until the payments are made.. then get the title and be done with it?

In the end, I just want to save my car. I have paid so much into it. I can't lose it - I depend on it to get to work, get my child to school...etc..
My lawyer says I should think about what is more important - clearing my dept or saving my car. I asked him if he planned on driving me to work each day then if I lose my car. He just looked at me...

Help - and sorry for the long post...

[AngelinaCat]

Let me see if I can help. A Reaffirmation Agreement is an agreement you make with your lender basically stating that you know you owe X amount on the car and wish to keep paying on it and will do so and keep the payments on time.

The agreement will go before a judge that will say yes or no to it--basically he will look to see if you actually have the income to support it. 'Hub and I signed one with our CU, which is located in Ohio. There were no problems and we did not have to attend.

Some institutions, such as our CU, insist on Reaffirmations, but many don't.

The plus side is that you know you are protecting your car. The NEGATIVE side is that if something happens that you can no longer make the payments, and have to surrender the vehicle, you will be responsible for the difference between what you owe, and what the car brings at auction.

Many people elect to do what is called a 'ride-through'. That is, they don't reaffirm the loan, but keep on making the payments anyway. Keep them on time. That way, if you end up having to surrender the car, you simply walk away from it and you will not be held responsible for the difference.

Did that help any? Or was it as clear as mud?

[StartingOver08]

AngelinaCat's explanation is exactly right.

One more thing though, the attorney was evasive with you because he does not want to sign the reaffirmation agreement. In the new law if the lender and the debtor sign the reaffirmation, the attorney also has to sign. BUT if the attorney does not want to sign, then the debtor goes in front of the judge to persuade the judge that signing the reaffirmation will not be a hardship on the debtor. That is why your attorney wanted to charge more - because he will not sign it. BTW, that is not a reflection on you, it is a policy of some attorney's to never sign reaffirmation agreements.

[freshstartfl]

You mentioned it's with a CU. Does your credit union have any cross-collateralization clauses? Most of them do. If so, and you owe them on say, a credit card that you're discharging in a bankruptcy, they likely won't give you the title when the loan is paid off.

[StartingOver08]

If it is with a CU, all you have to do is negotiate the removal of the cross collateralization. They do it. BTDT

[KT13]

Thank you guys SO much for answering so quickly!!


AngelinaCat - I completely understand. I've just re-read the paperwork they sent me and my CU isn't insisting on the agreement ~ they're giving me the option. There was a section that said IF the creditor is a CU and I am represented by an atty during negotiations, then the reaff. agreement becomes effective upon filing with the court. and IF i am not represented, then it will not become effective until the court approves it - and I will have to attend a hearing.
So with that being said.. IF I can get my atty to agree to sign/certify..then this means i'm A-OK?? The atty did send me a letter saying if I want to reaffirm, then he will charge me for it. So i'm not sure why he is saying I will have to go to a hearing and pay him even more $$ if so - b/c sounds to me like if he signs, then the courts OK it all and thats that. Right?
I also do understand the negatives side you mentioned, but that won't be a problem for me - i'll be able to continue making payments and plan to - no question about it.

freshstartfl & StartingOver08 - hmm, call me clueless..but what is cross-collateralization? I don't have any credit cards with my CU. All i have is my checking/savings/IRA accounts with them. The one and only debt I have with them is the carloan.

So in the end....aside from something such as the possibility of someone needing to walk away from their car for whatever reason WHY wouldn't someone want to file the agreement versus just a 'ride through'? The agreement would protect them versus the 'ride through" (the paranoia of the repo man lurking)?

[subking]

My atty wouldn't support a reaffirm on my auto so I'm doing the ride through. So far not a peep from the bank. I can't pay online but they take automated payments by phone, weird but whatever it works so far.

[subking]

Oh but don't get me wrong I'm totally stressed they will repo my vehicle which of course they have the right to.

[KT13]

My atty wouldn't support a reaffirm on my auto so I'm doing the ride through. So far not a peep from the bank. I can't pay online but they take automated payments by phone, weird but whatever it works so far.

Is it a CU? and do you still owe them much? So far my CU is taking my payments online.

Someone told me that if I do a ride-through - the best thing to do is to see if someone is willing to switch cars with me until the loan is paid off...then if the repo man comes looking for it - they can't find it.. Anyone know if this is something thats .. well, I dunno..do-able?

[Tbornetun]

For the most part, if you are doing a ride through and you are making your payments every month, they are most likely NOT going to send a repo man out. They are happy to be getting paid and in this economy so many banks and credit unions are sitting with a bunch houses, cars, etc. they have to get rid of. If you keep making those payments ontime and you have no other debt with the credit union, they are not going to take the car. You have other assets with the bank which are probably worth more than the $2000 you owe on the vehicle. They don't want you to take your money and IRA out of their hands so they will leave you alone. Just make sure those payments are made on time every month.

[mgmadara]

So in the end....aside from something such as the possibility of someone needing to walk away from their car for whatever reason WHY wouldn't someone want to file the agreement versus just a 'ride through'? The agreement would protect them versus the 'ride through" (the paranoia of the repo man lurking)?

A reaffirmation agreement doesn't protect you it protects the creditor. It is not in your best interest to reaffirm. If you keep making your payments on time your car won't be repossessed. They want your money, not your car. I have never read one post on this board where somebody that was doing a ride through and making their payments on time had their car repossessed.

[StartingOver08]

Also, not to scare you, but the CU probably has the right to set off the debt with your deposit accounts. So if you are late and you still have deposits with the CU, they can take the funds from the account. Now they probably can't do it if you are 30 days late - but at some point they can. (There are many posts on here about people having the funds from their accounts taken to satisfy a debt with the same CU or bank). As long as you pay, you are good! In order to know if your CU does this, read your car note AND any of the paperwork you signed to open your accounts.

[debtmonster]

http://articles.moneycentral.msn.com/SavingandDebt/SaveonaCar/TheRepoManIsGettingBusy.aspx?page=all

1.5 million vehicles repo'd last year. WOW!!!

[KT13]

Sigh. Confused/Conflicted....

I'm not worried about the CU taking money from my deposit accounts.
I make timely payments and always will until the loan is paid off. I will not lose this car - I cannot!
I just don't know if i need to reaffirm or not ----
I don't know if i need to pay the $250 to the atty to have him sign/certify the agreement and file it.
I don't know if i should ride through.

My only fear here is my car being taken and the best thing to do...

[Tbornetun]

Don't reaff, make all your payments on time. Pay it off and get on with your new debt free life. If you are making the payments, they are not taking the car.