Need clarification on auto loans..r/o/p

[aces67]

We're 13 days to discharge. We kept 1 auto that I wan't to surrender and dh wants to keep. We've not been contacted at all by our auto lender and our attorney has not said anything about trying to sign a reaffirmation on the car.

My question is this I need to keep for a few months anyway but I don't want to reaffirm it- we still owe like 42 payments on it. If we do nothing and let the discharge run out will we still be able to keep it if our payments are current?

What I mean is if we're paying on time every month can they legally repo it anyway? I've sent my attorney several emails on this with no response.

We started out as a 13. I think that our finance company just hasn't realized that we've been converted. I say that b/c when we initially filed the 13 they made us sign a voluntary reaffirmation on the car but my lawyer said that agreement is now void since we converted- he told me that back in April. I just can't get him to answer my other questions about the car.

Thanks Guys!

[liz417]

Yes you can, it's called a "ride through", just continue to make payments and when you decide that you don't need the car anymore, call the lender and make arrangements to surrender the vehicle.

BTW: Is the lender Ford or Chrysler? My attorney told me that these two lenders "tend" to excerise their right to repossess even if you are current and you don't reaffirm the loan(s) (I'm in Ca.)

[aces67]

No it's HSBC.

[Humonese]

My attorney advised us not to reaffirm so it stayed in the bk and we could walk away later if something bad happened (or keep paying on time and we get the title of course).

[struggling09]

ACES67 I had the same concern about our car situation and asked our attorney they same question. This was her response:

You must execute the Reaffirmation Agreements to keep the vehicles in the future. Once the agreements are executed, they will be filed with the Court. The Court will schedule a hearing that you are not required to attend. The judge will most likely deny the agreement at that hearing. That means that you are permitted to keep the vehicles as long as you maintain the payments and insurance in the future. If the judge denies the agreement, then you will not be liable to the auto lender if you decide to return the vehicle in the future. However, because you are not liable on any future deficiency balance, the lender is not required to report your payments on your credit report.

My only concern with that is what if the Judge DOES approve the agreement?

[OhioFiler]

struggling...I agree. I wouldn't take that chance.

You do have 60 days to rescind your reaffirmation agreement as well.

[aces67]

ACES67 I had the same concern about our car situation and asked our attorney they same question. This was her response:

You must execute the Reaffirmation Agreements to keep the vehicles in the future. Once the agreements are executed, they will be filed with the Court. The Court will schedule a hearing that you are not required to attend. The judge will most likely deny the agreement at that hearing. That means that you are permitted to keep the vehicles as long as you maintain the payments and insurance in the future. If the judge denies the agreement, then you will not be liable to the auto lender if you decide to return the vehicle in the future. However, because you are not liable on any future deficiency balance, the lender is not required to report your payments on your credit report.

My only concern with that is what if the Judge DOES approve the agreement?

So you're saying I have to reaffirm or surrender?

Right now a judge would probably okay a reaffirmation on it b/c the note on it is only like 15% of dh's take home pay.

[struggling09]

According to my attorney, surrender or reaffirm those are my choices. I have a meeting with her tomorrow about the reaffirmation agreements. I am going to ask her about a "ride through". I will post an update.

[lrprn]

There is variability in how local courts handle the "ride-through" issue. The bk law is clear - reaffirm, redeem, or surrender are the choices offered. HOWEVER, the reality is that most car lenders would rather you continue to make payments rather than repossess the vehicle, even if you choose to not sign a reaffirmation agreement.

The bottom line is that there is a risk in not signing a reaffirmation agreement, but so far it's been quite small. A few lenders (Ford Credit, for example) are known to be less ride-through-friendly, but what really matters is how YOUR lenders feel about it.

Chances are good that if you choose to not sign a reaff and keep making on-time payments, you'll keep your car after your bk case is closed. Ask your lawyer if he/she knows of any cases IN YOUR LOCAL AREA or WITH YOUR LENDER where not signing a reaff led to the filer losing their car even if payments were on time.

[ecsclb1724]

did you ever hear back from 722 redemption?

[aces67]

722 redemption isn't licensed in the state of TX. I found a couple of other redemption lenders but they aren't licensed in TX either.