Input needed, experience needed

[MARKETSACRIFICE]

Hello all,

I have hit a bump in the road and need some experience to be drawn on. I was up for discharge as of May 15th, but a reaffirmation motion had to be filed b/c of undue hardship

Went to the reaffirmation hearing for my vehicle that was supposed to be a formality but ended up as not being a formality.

Judge didnt agree with my attorney nor the attorney for the money man who were both arguing for me to reaffirm the vehicle.

Beyond that, he rescheduled the hearing wanting to see more income in four weeks and "put the discharge on hold"

Here is where i dont have a clue what happens, and dont understand what my attorney has to say on it.

I have decided to give the car back. Not reaffirm.

I filed late january, i need this done with. I want this chapter closed and move on.

So what happens now? Do i need to worry about a repo in the middle of the night? do i set up a time to take it back? what?

I am current on payments, never missed.

The attorney mentioned something about working with them outside of bankruptcy, but that seems foreign.

Any help is GREATLY appreicated.

[keepmine]

The judge is doing you a huge favor. There is some caselaw that says, all the code requires is, you make the offer to reaffirm. Once you've done that, you've fullfilled the requirements of the code.

http://www.georgiabankruptcyblog.com/archives/miscellaneous-cases-arizona-bankruptcy-court-ride-through-still-available-for-secured-debts-after-failure-of-timely-filed-reaffirmation-agreement.html

and:

Limited "Ride Through" Option Remains Post-BAPCPA
A federal district court in North Carolina has held that a limited "ride through" option remained in effect even after enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) to permit pro se Chapter 7 debtors who had done everything they could to reaffirm their $20,000-plus debt on a motor vehicle by filing a timely statement of intent and actually entering into a reaffirmation agreement, but whose reaffirmation agreement had not been approved by the bankruptcy court, to remain in possession of the motor vehicle while continuing to make their regular monthly payments to the motor vehicle lender. The automatic stay remained in effect with respect to the motor vehicle, the vehicle remained part of the bankruptcy estate, and the debtors were not in default on the car loan, despite the presence of an "ipso facto" clause in their loan agreement with the motor vehicle lender. The court rejected the lender's arguments that BAPCPA's plain meaning led to absurd results and that the bankruptcy court's analysis contravened clearly expressed congressional intent in BAPCPA's legislative history. Coastal Federal Credit Union v. Hardiman, 2008 WL 4899529 (E.D.N.C.).


and:

Fourth Option" Available After Reaffirmation Denial
The so-called "fourth option," under which a debtor may retain collateral securing a creditor's claim without redeeming it and without reaffirming the underlying debt, simply by continuing to make his regular monthly payments thereon, was not eliminated by amendments that were enacted as part of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). Accordingly, it could be utilized by Chapter 7 debtors who attempted to reaffirm their debt, but whose reaffirmation agreement was not approved by the court, based on their failure to rebut the presumption of "undue hardship" arising from a roughly $3,000.00 shortfall in their monthly income. In re Hart, 2009 WL 605739 (Bkrtcy.D.Del., Judge Sontchi).

[MARKETSACRIFICE]

Keepmine--

Thank you so much for the reply>

ive had a VERY rough week, so did i just read that as if the motion to reaffirm is withdrawn, i am discharged, and continue to make my monthly payment, they CANT take possession?

[deepin]

MARKETSACRIFICE

I have a reaffirmation hearing scheduled for next week due to a similar presumption of undue hardship..

Can I ask -- how did you and your attorney attempt to rebut the presumption of hardship?

Did you present expenses that you have cut or are prepared to cut?

Interesting that the judge wants you to 'come back' and show more income.

[keepmine]

Keepmine--

Thank you so much for the reply>

ive had a VERY rough week, so did i just read that as if the motion to reaffirm is withdrawn, i am discharged, and continue to make my monthly payment, they CANT take possession?

Yep. You did what the code required. Offered to reaffirm. You have no control over a judges decision to deny the reaffirmation.

[MARKETSACRIFICE]

Deepin-

Im showing negative budget in my schedules which was accurate at time of filing, since then, i have a little help from some outside sources and my income has picked up a fraction.

Keepmine--

Possible twist with mine, is i am requesting the motion be withdrawn. Not sure i have done "everything" required.

My income is complicated as BFS and im filing as a business debtor so there was no means test. I have decided to not reaffirm just so i can get on with my life. I am way to close for things to get messy at this point.

Emotionally i am drained.

[deepin]

Deepin-

Im showing negative budget in my schedules which was accurate at time of filing, since then, i have a little help from some outside sources and my income has picked up a fraction.

So I'm guessing the judge was not satisfied that the help from your outside sources and increase your income was enough to bring your DMI to break even?

Did you present any expenses that you could cut?

[MARKETSACRIFICE]

No, he wanted to see more documentation of income

there are no more expenses for me to cut out, Rent, SS and CS is all i have left but its a ton combined.

[OhioFiler]

The Court is "telling" you to do a ride through. Do as they say. You won't regret it.