Reaffirm Car

[relief13035]

We are just continuing to make our payments and doing a ride through.

[AfraidOfBK]

Hi Ash: Welcome to the forum. A basic guide to what you are faced with is this:
1. You reaffirm the loan because right now your job is stable and you know you will be able to make the payments. Then BOOM! Something happens and you CANNOT make the payments. Then the court procedures follow and by and by you end up with a judgment for the difference between what you owe on the car and what the Lender has sold it at auction for.

[PLEASE do not gloss over this item about the court procedures. There are MANY steps involved, and I suggest doing a SEARCH on my nickname or my husband's nic of 'AngelinaCatHub' regarding 'reaffirmations' 'car loans' 'co-sign' 'repossesions' and a whole bunch of other suggestions. We have been there and done about everything possible.]

2. Having said all of that, if you do NOT reaffirm your loan and keep making payments on time and as you regularly do, most lenders won't bother you and will leave you alone. Should you have to walk away from the loan and vehicle, you will NOT be responsible for the difference and can discharge it like any other debt.

You MUST be on time with your payment. If you want to keep the car, don't even think about being late or missing one, or else you will probably be toast.

If you are having payment troubles I would consider surrendering it, and finding a good used vehicle that provides basic transport.

Good luck to you.

Cat,

So what if I tried to reaffirm (I have two cars I need) and then they deny me...then can I try a ride through?

What if I try a 722 redemption (to get lower pmts, i have loans for like 6-8 year terms) and get denied....then can i still keep cars?

My main concern is - I try this 722 thing (which i dont fully understand) and then I mess up my chances of keeping hte car that I want....I just dont want to mess with a good thing...not that the pmts are great but if i fail at a 722 i dont want that to be the end of my car...id still want to keep the current pmts 9BTW, i am not late on any car pmts)

Hoping to file ch 7 in july, nevada, have Wachovia and Bank of the West as my lenders. THank you

[hamletsdead]

If you just keep paying the loan without reaffirming they cannot repossess your car. There is good case law on this. Just keep paying, and don't reaffirm, since you will then have created a new obligation that you are personally liable on.

[AfraidOfBK]

i have heard someone on this forum say that a year or more after discharge (they did a ride through) the bank was reposessing their car and they have always remained current.

I jsut dont want to be haunted by all of this after discharge. I want to keep my cars, but a lower pmt would definitely help our post BK budget. Are there any disadvantages to a 722 redemption?

[hamletsdead]

There are no disadvantages to a 722 redemption. It's just like a re-fi, basically, though you'll usually pay higher interest. But if you're loan right now is, for example, $30,000 on a car that's only worth $20,000, then you should be able to find a loan that has you paying less cash per month, and if you come into some money you can just pay it down sooner. It reports just like a car loan because it is a car loan.

[chad9162]

Does your current lender have to agree to the 722

[hamletsdead]

No, but they can object. If they do, you have a hearing re valuation. Mostly they don't object.

[chad9162]

So when do I apply to US Bank 722....I'm concerned Navy might try to repo my car