Reaffirmation Blues!!!!

[mscyg]

I am currently in a Chapter 7 and I had my 341 meeting on 4/3, with no objections. I have a 2003 Chevy Malibu with 120,000 miles that I still owe $9900.00 on. I had originally planned to reaffirm it and I was told by my lawyer if I was going to reaffirm, I had to make sure that I kept my payments current. The finance company (JD Byrider) sent the affirmation over with the same terrible terms as the original contract. (25% interest and NO grace period on payment, one day and they can repo! I was desperate when I got the car a little over a year ago, so I made a deal with the devil.) I contacted the creditor to see if there was any room to renegotiate my contract and was told that they do not renegotiate. I decided not to reaffirm and stopped making payments on the car (2 missed as of April 10). I still have the vehicle and I am currently saving for my down payment to get another, once I am discharged. I do need a car to get to work and school but I don't want to throw good money to bad by paying on this car I am not keeping. What I need to know is how long I am protected from reposession if I don't sign the reaffirmation agreement? I don't want to come outside and find my car gone or get a knock at the door from the repo man! Please help because my lawyer is being very vague!!!

[dingdong]

I believe until the lender files a Motion for Relief From Stay and it is granted. Or until discharge, which ever is first.

[Mi Bankruptcy]

You may want to consider the ramifications this will have on your filing. For example, now that you don't have the car payment would it free up enough cash to place you into Chapter 13? Something to think about.

[OhioFiler]

You may want to consider the ramifications this will have on your filing. For example, now that you don't have the car payment would it free up enough cash to place you into Chapter 13? Something to think about.

Not true at this point in time. This is the way ride-throughs are done all the time. You intend to reaffirm but never do.

[mscyg]

So, how long after filing or the 341 meeting do I have to reaffirm? Just so I have an idea of how much time I'm working with?

[OhioFiler]

Why reaffirm a car you owe $10,000 on that is worth $2,000?

[mscyg]

I don't plan to, but I know there is a deadline on the agreement. Just wanted to know what that was.

[jessegirl]

Ohio is right - doing this will not put you in a chapter 13. I am doing this as we speal right now. I did not reaffirm my vehcile and they will not take it until they get a relief of stay or you discharge then tthey can take it.

[Floridagail]

I was in same boat , but knowing how hard it is to get a loan I chose to keep my car current. As I need dependable transportation and buying a used car is not fun. It is only bill I have so not too bad. You have the option of catch up the payments right away and don't confirm. They cannot take the car with payments current. Or go buy a car before your credit report shows up bkptcy. Good luck with what you decide.

[Mi Bankruptcy]

I reaffirmed two cars and my house. I thought about letting my SUV go because It broke down and had been sitting in my driveway. I owed what it was worth. However, my attorney said we already said you would reaffirm on the petition we submitted and being close to having money left over may raise some eyebrows. Of course, if you have confidence in your attorney and they don't have a problem with it... hopefully you will be O.K.

[SubPrimeME]

Money talks, if you can put down 20-30% on a car you will most likely get credit. my score was 460 going into the loan- I put down a big payment(which I saved while not paying for the car) and my debt to income was good. So long as you have a downpayment and good debt/income, you most likely will get credit. I have a 60mos term at 12.99% with a 460 score!!!

***I got this the day after I was discharged!***

[mscyg]

Thanks for the info!!! I was planning to save $1500.00 within the next 60 days and I'm looking for something in the $12-15K range, so I should be ok. If not, I'll drive a putt putt for a few months!!! :-)

[NoMoreRed]

I would do a ride through. You owe $9900 and are paying 25% interest on a vehicle that has 120,000 miles and is 6 years old. You could get a replacement through 722 Redemption or after discharge that is newer, has less miles and possibly better terms.