re: car ride-through

[marinah]

Hi, we just had our 341 meeting last week, everything went fine...when we filled out our Statement of Intention, we said we would redeem our car. In fact, we tried to get a redemption loan and were denied.

Now, we are hoping to ride-through (have been making on-time payments) and then surrender the car after discharge and get a replacement car for cash.

Got a letter in the mail today from our car lender, saying they need to know what we are going to do about the car (they want our Statement of Intention) and if we don't let them know soon they will repossess the car.

Should we just send them a copy of the Statement as filed -- stating that we planning to redeem the car -- and leave it at that? What is our best course of action to do a ride-through? We have about 55 days until discharge at the soonest.

[StartingOver08]

Did you have an attorney file your BK?

If so, ask the attorney. If you filed pro-se then do as you proposed. You still have time to either complete the redemption or change your statement of intentions and refile it before you are discharged.

[marinah]

We filed pro se. So I will send them the Statement of Intention as filed to buy some time. Thanks for the advice!

[jeb]

There has been a lot of discussion about reaffirming on vehicle loan.

The latest I have is from my attorney -

In the new BK law, when one files BK the company holding the auto loan CAN repo the car even if you are up to date on the payments.

Some states have passed laws that they can't but not one of these laws has been tested in court as yet.

Some lenders - GMAC, WellsFargo and others have been doing so.

Bottom line seems to be you are taking a risk if you want to keep your vehicle and don't reaffirm. - jb

[StartingOver08]

Jeb, I think the OP is ok while they are in the automatic stay period. I think they are just trying to buy a little time to save some funds. For the company to pick up the car, they have to lift the stay. If the OP drags their feet on responding a little, they will get their time and then can change the Statement of Intentions to surrender the vehicle just before discharge.

OP, remember that new Statement of Intentions has to be filed with the court BEFORE you are discharged, so don't let it get too close to the discharge date.

[marinah]

So what would happen if we don't change the Statement of Intention, send it to the lender (Sovereign Bank) stating we plan to redeem the car, then we stop making payments after discharge and plan to have a replacement car available right after discharge?

What is the reason to change the Statement before discharge?

[MSH]

I am actually planning a ride thru... my attorney and i put that we were retaining and redeeming my car. I was informed to keep making payments.
He says with the way things are with the economy, it is doubtful that they will come for the car. He said they usually don't when things are good with the economy.
I was actually behind a month for awhile and got myself caught up 2 weeks ago.
Keeping my fingers crossed... and keeping making payments.

Do they notify you if they decide to repose?

[StartingOver08]

They do NOT notify you if they decide to repossess.

[jeb]

So what would happen if we don't change the Statement of Intention, send it to the lender (Sovereign Bank) stating we plan to redeem the car, then we stop making payments after discharge and plan to have a replacement car available right after discharge?

What is the reason to change the Statement before discharge?

IF you do not plan on keeping the car I would thing the only reason to fill out and send back the papers is to buy you some time before repo.

Do not, however, sign any reaffirm papers or you will be stuck with the full amount of the loan after BK and after they repo the car. - jb