Met with Credit Union - Went good I think

[madzkenz]

I met with my credit union trying to renegotiate my two car loans which are about $1600 total. They gave me an extension and cut my payment in half with no timetable to bring it back to the original contract amount. Will the court be OK with this or do you guys think they may not approve of this still.
I have an excellent relationship with this CU and I do not want to turn these cars in. Please let me know if anyone has taken this route before.

[StartingOver08]

I did what you are doing - only I had one car loan with the CU with a larger balance, but not huge ($6000) and we negotiated a lower payment and removed all cross collateralization (because I also owed for a 2nd mtg and a VISA to the same CU). The CU put our new agreement in the reaffirmation and everything is going well.....when you only owe $1600 like you do it makes since to reaffirm rather than surrender.

[MrSmithster]

sure you dont mean $16,000?

[madzkenz]

Sorry I meant $1600 a month total

[joh]

1600$ a month for car payment is huge. That more then my mortgage.

[madzkenz]

This is between two cars , one is $900 and the other is $700.

[aces67]

This is between two cars , one is $900 and the other is $700.

That's still 2 huge car notes. I can't imagine spending that on vehicles.

[madzkenz]

I was not looking for everyones opinion on what I pay. I wanted to know if anyone experienced this type of short term relief from a secured creditor to satisfy a bankruptcy court for a chapter 7.

[miozelous]

I have 1 car loan with CU. I have already recieved reafirmation papers and have not even had my 341 yet. I go to sign them thursday. I owe 19,000 on the car. All they wanted was our insurance coverage for the car.

[Rick9972]

I was not looking for everyones opinion on what I pay. I wanted to know if anyone experienced this type of short term relief from a secured creditor to satisfy a bankruptcy court for a chapter 7.

Actually you have asked everyones opinion on what you are paying. You are asking if you can get a modified agreement with a secured creditor through BK. Thus the first thing reviewed is the payment amounts. No matter what you say these are very large payments and a temporary change from your CU will probably not sufface.

[StartingOver08]

Wow...I missed that one! $1600/mth is over the allowance for vehicles in BK - period. If you are not ready to turn the vehicles in, then you ought to rethink your BK. Why file if you are going to reaffirm large debt?

[OhioFiler]

This is between two cars , one is $900 and the other is $700.

Do tell! What are these cars you speak of?

[mmenz22779]

I cant imagine how you could file BK with 1600 a month in car payments and not have the trustee question that. But good luck.

I never reaffirmed my car deb nor did they ever send me one.t. I just kept paying on the loan. I do have a MDX that cost me 20k, it is 4 years old used, but I needed a family car. The Trustee did not even question the 365 a month car payment.

[Chowder]

I was not looking for everyones opinion on what I pay. I wanted to know if anyone experienced this type of short term relief from a secured creditor to satisfy a bankruptcy court for a chapter 7.

I've seen a few posts from others who have tried that route. I can't recall one with a happy ending.

Those short term relief deals generally turn out to be just that. If you reaffirm, the payments will bounce back up to where they were a problem to make in the first place.