Reaffirm Hearing Question

[metz999]

Just received a notice from the court requesting a reaffirmation hearing for my car loan in 1 month. I show -220 left over in my budget statement and the judge might not allow me to reaffirm correct? My car loan company has already submited a reaffimation agreement to the court which I have not signed. I wanted to ride thru but I guess this won't be possible now. If I don't reaffirm they can take the car right after the BK is final, right?

Also, I am in SoCal...how long has the average been for start to finish? Maybe I could not pay the car any longer and save up that money to buy one post discharge. I am 36 days post 341 meeting.

Thanks in advance for all your help...this is a super forum!!

[lrprn]

Just received a notice from the court requesting a reaffirmation hearing for my car loan in 1 month.

Since you are going before the judge to get a ruling on your reaffirmation, I'm assuming you filed on your own without a lawyer (pro se), right?

I show -220 left over in my budget statement and the judge might not allow me to reaffirm correct?

That's correct. You have to prove to the judge that you can file bk and still pay for the car. This is actually a good thing, because the judge will be impartial about whether it's in your best interest to sign the reaffirmation. He/she won't be swayed by an emotional attachment to the car - it's all a numbers game.

I wanted to ride thru but I guess this won't be possible now. If I don't reaffirm they can take the car right after the BK is final, right?

Typically the auto lender won't take the car after discharge and closing as long as the filer is making on-time payments. Also there are a few states (KS is one of them) where state law prevents a creditor from repossessing any secured property if the owner is making on-time payments.

Riding through without a signed and filed reaffirmation is always a risk - although a low one overall - that you will have to decide if it's worth the gamble. On the other hand, if you are extending yourself to keep the car after filing and something happens in the future so you can't continue to make the car payments, then the car will definitely be repossessed AND you'll be left with a large amount to pay back to the lender AND you'll have no car.

This is why most lawyers will recommend to not reaffirm a quickly depreciating asset like a car. Overall the risk of future financial troubles is higher than the risk the car will be repossessed after closing if you are making on-time payments.

[metz999]

Since you are going before the judge to get a ruling on your reaffirmation, I'm assuming you filed on your own without a lawyer (pro se), right?

No I do have a lawyer and I have not talked to him yet about it.

[veggirl]

do you always have to go before a judge to reaffirm your car?

[metz999]

veggirl, I am not sure myself. I thought a hearing was not necessary if you have a lawyer but maybe it is up to the loan company. I have a small loan company in Irvine Calif called CIG Financial and they have been very active in the process. First they filed the reaffirm paperwork and now they requested a hearing. I am 2 payments behind because I needed the money for the lawyer and will be tough to get it caught up. But on the other hand I need a car to get to work and if they take mine it will be hard to get a loan with my bad credit.

[lrprn]

do you always have to go before a judge to reaffirm your car?

No, veggirl. The only time you are required to go before the judge to reaffirm is if you are filing on your own without a lawyer.

It sounds like metz999 has some extenuating creditor circumstances that may be forcing the judge to rule on his/her reaffirmation.

[lrprn]

No I do have a lawyer and I have not talked to him yet about it.

It's definitely time to talk about it. Call, email, set up an appointment, or sit in the office until you can be seen - you need to understand what's going on here and why you have to go before the judge over a reaffirmation when you have a lawyer. Get going.

[Greenie]

I had to go to a reaffirm hearing for my car and I had an attorney. My lawyer said that my particular judge required hearings for all reaffirmation agreements whether there's an attorney involved or not.

[meoops]

Just received my post filing paperwork from lawyer and it states "The attorney at your 341 hearing will recap reaffirmation issues with you to determine what you wish to do with your mortgage and car loans. A reffirmation can be filed with the court any time before discharge. Discharge usually comes approximately 60-90 days after your hearing, but cannot come sooner than 60 days pos-hearin. If you want to keep your house and car, be sure to keep current on all payments. Please be thinking about this issue prior to your hearing so that the attorney can have a meaningful discussion with you at that time."