Filed 3/5/09!

[inpain66]

My lawyer advised me that my case was filed 3/5/09. He did all of the official paperwork. I just had to fill out his packets and give him all the paystubs, copies of bills, copies of taxes and so on.

He is trying to discourage me from just continuing to pay my car without the reaffirmation. I have no idea why he is so pro reaffirmation. I am going to meet with him again later to discuss this.

He has not mentioned the education classes yet. I just hope that he filled out all the paperwork okay. I signed the official papers but did not get copies.

wish me luck!!

Paying for the lawyer was the hardest thing for me.

[StartingOver08]

Did you take the pre-bankrupctcy credit counseling class before filing? That certificate has to be submitted immediately upon filing. There is no leeway on this requirment.

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre41.shtm

What kind of financing do your have for your car? Is it Ford Motor Credit? They are notorius for repossessing the car even if the payments are current if there is not a signed reaffirmation agreement. Look at this article:

Before Congress passed the “Bankruptcy Abuse Prevention and Consumer Protection Act” (BAPCPA) in 2005, dealing with car loans in Chapter 7 cases in most states was pretty simple—if you made your payments you could keep your car, and if you didn’t, even though the car finance company could repossess the car, you wouldn’t be personally liable for any deficiency.

This has changed.

Now, you are given three options. The first is to “reaffirm” the car loan. This means that you sign a document, that must be approved by the Court, making you permanently liable for the car loan, regardless of what happens, as if you had never filed for bankruptcy. Reaffirming a car loan means that you keep the car so long as the payments are being made, and if they aren’t made, you’re on the hook. Although reaffirmation was available pre-BAPCPA, it didn’t make a lot of sense in those states where “keep and pay” was available.

The second option is one that was also available pre-BAPCPA: redemption. This involves paying the lender the current market value of the car, in a lump sum. Redemption is almost always used where the car is significantly “upside down”–you owe a lot more on it than it’s worth. Although there are several lenders that specialize in making this sort of loan, many people who file Chapter 7 are not able to make this sort of lump sum payment.

The third option is still “keep and pay,” with a twist. Some car lenders, primarily Ford Motor Credit, will repossess a car, even if payments are current, as soon as the bankruptcy case is discharged, if a reaffirmation agreement isn’t signed and approved by the Court. Most will let you keep the car, but there are no guarantees. And in some states, the Courts have explicitly done away with “keep and pay.”

So, some of you might say, “Well, I’ll just sign the reaffirmation agreement then.” This might not make sense for you, though. If your budget doesn’t show that you have the money to make the payments, if you owe more on the car than it’s worth and can’t redeem the car, or if you’re likely to get into financial difficulties in the future, it might not be in your best interest to reaffirm. In many cases, even if you want to reaffirm, the Court won’t approve the reaffirmation agreement.

Here in Maryland, I am currently challenging Ford Motor Credit’s ability to repossess after discharge where payments are current, but a decision by the Maryland Court of Appeals is unlikely before the Spring of 2009. Until then, due to the risks of reaffirming and where redemption isn’t an option, I usually recommend that clients not reaffirm, at least where the car lender is someone other than Ford Motor Credit, and if the car is repossessed, simply get a new one. (Most auto lenders are happy to loan you the money for a new car as soon as you receive your discharge.)

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

[TEW]

My lawyer advised me that my case was filed 3/5/09. He did all of the official paperwork. I just had to fill out his packets and give him all the paystubs, copies of bills, copies of taxes and so on.

He is trying to discourage me from just continuing to pay my car without the reaffirmation. I have no idea why he is so pro reaffirmation. I am going to meet with him again later to discuss this.

He has not mentioned the education classes yet. I just hope that he filled out all the paperwork okay. I signed the official papers but did not get copies.

wish me luck!!

Paying for the lawyer was the hardest thing for me.

You have to check one of the options when you file. you can check reaffirm and just don't do it. How many lawyers did you talk to. This one didn't explain things very well.

[EricaCallaha]

I guess the real question is...Do you want to keep the car? If you do you need to reaffirm the agreement or give it up. I can't believe the lawyer didn't explain that more clearly.

Good luck.

[inpain66]

My car loan is with the credit union. The credit union told me on the car that they would let me reaffirm just the car but I did not get it in writing.

I really would like to keep the car.

I owe 16k on it still with 4% interest rate.