Received reaffirmation paperwork

[mamaluv]

Today my lawyer sent me my reaffirmation paperwork for my car. I want to reaffirm the car. I was a little concerned because it is with a CU that I also have a Visa I am including so I thought they may try to make me reaffirm all the debt but to my suprise they only have down my car. Anyhow the letter from my attorney says he will not sign off on a reaffirmation because A)the value of my vehicle is less than I owe.....ummm huh???-I only owe $9200 and blue book on my car is $10,600. I don't know where the heck he is getting this from. And B) he thinks it would pose a hardship. Now granted according to my schedules my DMI is -$400 but the expenses listed were closer to standards not really what I actually spend and I was not working any OT during the 6 month period. In fact now that I am free of the CC debt I can actually save a little money each check. I have never been late once and I have no problem making the payment. I only have 20 payments left and the int rate is 5.25% so it's a pretty good deal.

So he says I can sign it anyway and then send it back to my CU and I will have to have a hearing to determine if it's a go. If I sign and do the hearing how do I convince the judge that it's not a hardship?

[pookieny]

I got a letter today for my Toyota to reafirm and it's marked as an undue hardship and I am also at a negative 400 per month. I have a 2005 Camry which I owe $10425 and I think the blue book is right around that. My rate is 8.9 and I have about 31 payments to make. I do want to keep but don't want to pay for another 3 years at $336.00 per month.

[miozelous]

Can i ask you how soon after you filed did the CU send you your paperwork? I just filed the end of June and my 341 is early August and they have already sent me my papers. Is this odd?

[mamaluv]

Well in my case I actually called the CU...not to ask for reaffirmation paperwork but because I had a feeling they never received my BK notice. They had sent me a statement and a past due notice on my credit card and I still had online access so I kinda figured my notice got lost in the shuffle. I called just to let them know I had filed and they transferred me to the BK Dept. While on the phone the gal asked what my intentions were with my car and I told her I wanted to reaffirm so she said the would be sending papers to my attorney. I don't think it's odd that they sent them already.

[OhioFiler]

Today my lawyer sent me my reaffirmation paperwork for my car. I want to reaffirm the car. I was a little concerned because it is with a CU that I also have a Visa I am including so I thought they may try to make me reaffirm all the debt but to my suprise they only have down my car. Anyhow the letter from my attorney says he will not sign off on a reaffirmation because A)the value of my vehicle is less than I owe.....ummm huh???-I only owe $9200 and blue book on my car is $10,600. I don't know where the heck he is getting this from. And B) he thinks it would pose a hardship. Now granted according to my schedules my DMI is -$400 but the expenses listed were closer to standards not really what I actually spend and I was not working any OT during the 6 month period. In fact now that I am free of the CC debt I can actually save a little money each check. I have never been late once and I have no problem making the payment. I only have 20 payments left and the int rate is 5.25% so it's a pretty good deal.

So he says I can sign it anyway and then send it back to my CU and I will have to have a hearing to determine if it's a go. If I sign and do the hearing how do I convince the judge that it's not a hardship?

Your schedule J should reflect reality.

[mamaluv]

Sorry let me clarify...I was not implying that my attorney just made up random numbers and put them in. For instance I have down $100 for clothing. Do I spend that much a month on clothes? Sure sometimes I do. But since filing I have spent less in an effort to save money. Same for gas, I drive less or combine trips to save $ there. I have an amount listed for haircuts-I started cutting my son's hair myself. So what I'm saying is the numbers were accurate at the time but I am trying to cut costs here and there. Also my avg monthly income is on the low side due to having to take some LWOP during the 6 month window and a couple paycheck screw-ups.

[AngelinaCatHub]

Today my lawyer sent me my reaffirmation paperwork for my car. I want to reaffirm the car. I was a little concerned because it is with a CU that I also have a Visa I am including so I thought they may try to make me reaffirm all the debt but to my suprise they only have down my car. Anyhow the letter from my attorney says he will not sign off on a reaffirmation because A)the value of my vehicle is less than I owe.....ummm huh???-I only owe $9200 and blue book on my car is $10,600. I don't know where the heck he is getting this from. And B) he thinks it would pose a hardship. Now granted according to my schedules my DMI is -$400 but the expenses listed were closer to standards not really what I actually spend and I was not working any OT during the 6 month period. In fact now that I am free of the CC debt I can actually save a little money each check. I have never been late once and I have no problem making the payment. I only have 20 payments left and the int rate is 5.25% so it's a pretty good deal.

So he says I can sign it anyway and then send it back to my CU and I will have to have a hearing to determine if it's a go. If I sign and do the hearing how do I convince the judge that it's not a hardship?

I would listen to your attorney at this point. If he will not sign off, the Judge is likely not to allow it anyway. You do not have a lot of equity it that car. The lawyer probably looked at a trade in value not a retail value which is more realistic.

Good used cars are now glutting our country. Mrs. and I purchased a very nice Chrysler New Yorker 1989, mint shape, non smoker, single owner, 80k on it for $1500.00. We also purchased at auction for $800 a 93 Pontiac Grand Am police car with 111k and are still driving it four years later. Great mileage as well. If the car breaks I can afford to leave it on the side of the road, but to date it runs great and the air works wonderfully.

A car is only that. You would be much better off having an option most people do not have on their car. A clear Title. 'Hub

[aces67]

The worst thing you can do is come out of a Ch 7 with too many debts. I would probably listen to your lawyer and not reaffirm at this point.

[deepin]

mamaluv

we are in a very similar situation ... -$500 DMI, facing a reaffirmation hearing for mortgage & a vehicle in 2 weeks

at this point, looks like we will lean on our attorney to help present our plan to make ends meet with the reaff(s) and hope for the best at the hearing ...worst case scenario - prepare ourselves for a ride through (although the ride through seems to be a bit risky and a district by district issue).

i have yet to come across anyone here who has first hand experience with a reaffirmation hearing and/or anyone who has successfully rebutted the presumption of hardship during these hearings.

the sheer number of reaffirmation hearings scheduled would suggest that someone out there has been successfull ...

[mamaluv]

In reality my DMI is about -$200. On my scheules it came out to -$400. My actual take home pay is $200 more than my average due to the issues I stated above. I can easily make up that $200 with cut backs on expenses & OT but we shall see.

[OhioFiler]

In reality my DMI is about -$200. On my scheules it came out to -$400. My actual take home pay is $200 more than my average due to the issues I stated above. I can easily make up that $200 with cut backs on expenses & OT but we shall see.

It would be a mistake to budget based on overtime income.

Having more expenses than income after BK is a concern as well. How will you meet your obligations if you are $200 short each month?

[tater500]

re

I just went through the same thing. The trustee will look at what was on schedule j and k of you bankruptcy vs what you write on the reaffirmation. When you write down the figures of you current income and expenses, make sure you explain why your income is more-if it is and why your expenses are less. Since I had actually explained things on the sheet my reaffirmation took about 2 minutes, after waiting 2 hours. The people that did not write explanations he asked how did you come to these figures.

[mamaluv]

Oh by all means I am not budgeting based on OT, that is just extra in my pocket. When I said I can eat $200 in cutbacks I meant this way. I had down $100/mth on my expenses for haircuts/salon. I now cut my son's hair myself and I have a friend that will do mine for free. That's $100 off my expenses there. I had a $35/mth copay for medication I was on. As of last week I no longer need to be on it so that's another $35 gone.

[mamaluv]

I was reading through my agreement and noticed that if the debt is held by a CU there are different rules. On Part D, Debtor's Statement in Support of Reaffirmation if the debt is with a CU you only have to complete part 3 saying you believe you can afford the payments. If it is not with a CU you have to complete part 1 & 2 stating your income vs. expenses and explain how you can make the payments if you are negative. From researching a bit on the net it seems if it's with a CU it's excluded from the presumption of undue hardship. Does anyone know why this is?

[mamaluv]

Just an update...seems the rules regarding CU's are correct. All I had to do was sign off saying I can afford the payments. I didn't have to explain any of my income or expenses. No hearing regarding undue hardship was needed.