Reaffirm info -

[jeb]

There has been several post about if one should reaffirm their vehicle or not. The predominate post is not to do so but just keep paying the payments.

Here is the reply from my attorney when I sent him an email asking about it after USAA sent me - well, actually they had shopped it out to another company, NBSC, LLC - the paperwork to reaffirm my car and telling him what I had read here.

That is old information. The creditors can repo, many, including Wells Fargo, Gmac among others do.

If one is up to date on the payments, can they repo the car and, if so, under what laws? Does just the filing of BK give them that right even if one is up to date on payments?

If it is not in the BK laws, does this mean that they could repo any time they wanted for no reason?

Take care all and hope everyone had a good Easter. - jb

[lrprn]

If one is up to date on the payments, can they repo the car and, if so, under what laws?

It depends on the state. Some states (KS for one) have state laws that don't allow creditors to repossess secured assets as long as the payments are on time. In those states, there truly is no need to reaffirm as long as you continue to make on-time payments without fail. Miss a payment on a non-reaffirmed asset, and the door is opened to getting the asset taken back.

A few years ago Ford Motor Company got the rep as a real hard-a** lender if their debtors didn't file reaffirmation agreements. They did repossess a few up-to-date payment cars after their owners closed their bk to make all FMC filers afraid not to reaffirm. Now that Ford is having its own major financial problems, word's out on the street that most of their dealers aren't being nearly so hard-a** about this as they once were.

Bottom line is that not reaffirming is taking a chance that the asset might be taken after your case is closed. This is a risk that each filer needs to assess for themselves with their lawyer's help.

Does just the filing of BK give them that right even if one is up to date on payments? If it is not in the BK laws, does this mean that they could repo any time they wanted for no reason?

As I said earlier, it depends on the state and the creditor. The creditor is going to do what's in its best financial interest. In a bad economy, so far from what I can see reading multiple financial websites and online forum sources, at this time most creditors are still going the route of taking regular payments now rather than taking a chance of getting all their money back by repossessing and then hoping to sell the asset at full price.

[jeb]

Tks, Irprn -

I will ask tomorrow if being in Florida has something to do with it.

As I understand what you have said, BK has nothing to do with this - just if one misses one or more payments they could repo?

I missed payments for two months and then not only made those payments up but also made a large payment on top of it. USAA credited the large payment towards each individual months payment so at present I am not only up to date but about one years payments ahead at this time. When I did not receive a payment notice and called them - they said no payment was due.

Does the fact that USAA has passed this to NBSC, LLC out of Dallas rather than doing it themselves seem odd to you? - jb

[lrprn]

As I understand what you have said, BK has nothing to do with this - just if one misses one or more payments they could repo?

The only way bk gets into this is that if you chose to 'ride through' and not sign a reaffirmation agreement. If after your case closes you miss payments, then whether you have or have not signed a reaffirmation agreement, the lender has every right to repossess/foreclose.The only difference is that if you didnt' sign a reaff agreement, you won't owe the balance on your loan. It's up to you and your lawyer to decide if it's worth the risk in your area of FL to not reaffirm secured assets in your specific situation or not.

Does the fact that USAA has passed this to NBSC, LLC out of Dallas rather than doing it themselves seem odd to you? - jb

Actually it's not unusual for large lenders to pass off their bk accounts to a third party to manage the debt for them while your case is active.

Did USAA actually sell your debt to NBSC or is NBSC just managing your account for them while you're in bk?

[jeb]

The only way bk gets into this is that if you chose to 'ride through' and not sign a reaffirmation agreement. If after your case closes you miss payments, then whether you have or have not signed a reaffirmation agreement, the lender has every right to repossess/foreclose.The only difference is that if you didnt' sign a reaff agreement, you won't owe the balance on your loan. It's up to you and your lawyer to decide if it's worth the risk in your area of FL to not reaffirm secured assets in your specific situation or not.

Actually it's not unusual for large lenders to pass off their bk accounts to a third party to manage the debt for them while your case is active.

Did USAA actually sell your debt to NBSC or is NBSC just managing your account for them while you're in bk?

In looking at the papers again, it says they are teh authorized agent for USAA in this matter - NBSC stands for National Bankruptcy services. Com so I assume they do not own the loan.

If I understand it, as long as I am now up to date and remain so they can not take the vehicle - if I should fall behind they could do so?

Again, tks - jb

[chad9162]

yes

[StartingOver08]

jb, I'm in Fl too. Some of the lenders have in-house BK depts and others have outside services. Once you are discharged, the loan may very well get back to USAA, you can call NBSC and see what their procedure is...

Also, my attorney said exactly what your attorney said about repos. I don't know if this is a FL thing or not. I ended up reaffirming on a very small car loan ($6k) with a local CU in Tampa and surrendering the other vehicle because it was too upside down. My attorney would not consider the ride through....

[Logan]

I was with USAA and had an auto loan that I did NOT reaffirm. I ended up turning over the vehicle 6 months after discharge when my job became shaky. I still have my job but I am glad I did not reaffirm.

USAA is not in the business to repo cars and it is cheaper for them to outsource a company that specializes in these dealings. Keep in mind that they will lose money if they repo your vehicle and they don't want to lose money.

Logan

[jeb]

latest I have found on reaffirm

My attorney has told me that in the new BK law, if you do not reaffirm an auto loan the company may repo the vehicle even if you are up to date on the loan.

Also, that some states have passed laws saying they can't but none of these laws have been tested in court as yet.

Seeing as one would have to go through the process of letting them repo the car and then file to get it back, doesn't seem worth the risk involved if one wants to keep the car. - jb

[drowningNdebt]

Jeb - did you end up reaffirming the car with USAA or doing a ride through? Do you know if USAA has cross collateralization?

[drowningNdebt]

well I called and spoke with the BK department of USAA. They advised me if you don't reaffirm and just keep making the payments that they will not repo the car. They even stated if your having difficulties paying the loan after to call them and they will work with you. Once paid, the title gets mailed to you. All other dedbts that were with them get discharged in the BK and no cross collateralization.
NOW if you reaffirm the only difference is that your responsible for the debt. The loan gets reregistered on your credit (could be good as a tradeline) after the BK BUT makes you responsible if you fall behind and the car gets repod! There for you have to pay the difference of what you owe vs. auction. Including in BK you can literally just walk away from it if you can't afford the vehicle or the motor blows up.
Conclusion, it seemed that she was pushing me to not reaffirm but didn't come out and say that. Hope this helps all with USAA accounts.

[RainMoM]

I'm a bit confused here, I'm from Central Florida, and so far have not done a reaffirm on our two cars as of yet.. So let me get this right, if i continue to make payments on time, they can still come and repo my car ?? At any time AFTER I am discharged ? I called my attorney today, and left a message, someone in his office called me back and told me, " as long as you are current with your cars, you'll be fine " well needless to say i don't feel comfy with that answer ! Could someone plz help me understand this !

Also:: is it true you can not do a ride threw in central Florida ?

[Amy26]

I was not comfy with the "you should be fine" part. I just sent my reaffirmation paperwork in for my car today. I just bought it in March, its brand new and I really want the security of the agreement and have the ability to have something decent on my credit report going forward.

[RainMoM]

You mean to tell me if i don't do a reaffirm on my cars, I won't get good marks on my credit report for paying on time ? WTH ??

[Amy26]

I dunno if you have pulled your credit reports or not since you filed... but if you were to, you would most likely see that your loan company has zeroed out your car loan balance and marked it as "included in bankruptcy". Even though you are paying on it still and up to date... it is technically a "discharged debt" since you're not reaffirming it. Therefore, they will not report it on your credit report.