Repossession of auto after reaffirming the loan

[marie1260]

Hi,
I'm new to the forum and would like to ask a question.
My husband and I went to court for our chapter 7.
We are now waiting for the discharge which should take place some time in July.
Anyway, I feel we goofed when we reaffirmed the loan on one of our autos and we are have had a hard time paying for the car. I heard that it is a very bad thing to have a repossession after a chapter 7 if you reaffirmed prior to the bankruptcy.
Does anyone know what the repercussions might be or has anyone had a similar situation?

marie1260

[justbroke]

The repercussions are that you will have to pay for that car... in full. Are you sure all the reaffirmation paperwork is good? Did the judge and your attorney both sign off on it?

If you haven't discharged yet... contact your attorney. You may be able to get this done. (No promises... just thoughts.)

[DebtEnder]

In the paperwork I got for my re-affirm of a car, which i'm not signing, it says I have 60 days from the date of signing, or the dischagre date to negate my reaffirm.

So even if you do sign and it's goes thru the courts you can still un-do it with no other issues.

[kenshirley]

Check with your attorney.
We reaffirmed ours but our attorney told us that up until discharge that could be undone if I remember correctly.

[Iamtoobroke]

Yes, I believe that is correct. I reaffirmed my car a few weeks ago. I am post 341, but pre-discharge. The paperwork says I have 60 days or until the time of discharge whichever comes first to back out. Heck, by then my car will be paid for. I only have 2 more payments--yea!

[AngelinaCatHub]

Hi,
I'm new to the forum and would like to ask a question.
My husband and I went to court for our chapter 7.
We are now waiting for the discharge which should take place some time in July.
Anyway, I feel we goofed when we reaffirmed the loan on one of our autos and we are have had a hard time paying for the car. I heard that it is a very bad thing to have a repossession after a chapter 7 if you reaffirmed prior to the bankruptcy.
Does anyone know what the repercussions might be or has anyone had a similar situation?

marie1260

You can petition the Court RIGHT NOW, before your discharge and 60 days. Please do not delay. You can still keep the car if you "pay through" and they will most likely not want to take it back as long as they get your payments. However, if you cannot pay for it further you can give it back without repercussions. If the reaffirmation is approved and you are discharged, you MUST pay for that car or be held liable for a Judgment that will not be discharged. Time is of the essence. 'Hub

[relief13035]

Withdraw that reaffirmation right away!

[Stilltheone]

Withdraw that reaffirmation right away!

I agree!

We reaffirmed our Escalade and, of course, gas prices took a jump, therefore making the value of our Escalade next to nothing. Now that we'd like to get rid of it, we can't. We still owe $16,600 on it and it's worth $12K.

We can't give it back to the lender either because then we would still owe the difference of what they sell it for versus what we still owe on it.

We looked into withdrawing our reaffirmation, but after we were discharged. It was too late.

DO IT RIGHT AWAY!! CONTACT YOUR ATTORNEY IMMEDIATELY!!

[marie1260]

Getting out of auto reaffirmation before discharge

Thank you all for the great advice. I was not aware that I could undo the reaffirmation before the discharge takes place. I'll contact my attorney ASAP. It's a fairly new loan and we owe about $8000.00 more than we would ever be able to sell it for.
I looked at the "ORDER REGARDING REAFFIRMATION AGREEMENT" that we received from the court, and it doesn't say very much at all. It doesn't give any time limits and simply states that it was approved by a certain judge on May 7.
I will definately contact my attny. though and try to get out of this agreement. Keeping the car can only hurt us at this point and I am sure that I can find an acceptable used car for the time being. Right now, this is a payment that I surely do not need.