Last minute qestions

[tweety1]

Finally filed Ch7 on 09/02/09. Had foreclosure sale scheduled that day, so I had to file. Although I plan to surrender the condo, just wanted to extend my free stay here. Decided to go pro se, as I think I've learned enough from this forum and other resources. I'm well below median, don't have any unusual assets, so I think I should be OK.

I'm still working on my schedules as I only filed petion itself. Everything is almost ready, just have few last minute questions.

1. Should I use trade-in or private party value for the cars? I've heard different opinions on that. What is customary nowdays? I have 2 cars on paper. One is mine, the other I was just a cosignor on the loan for my ex-bf. He has possesion of it, pays bills, maintains insurance etc. If I use trade-in values I can fit into allowed exemptions, however private party values puts me overboard. I'll still be able to fully protect my car, but about 1-2K of his car will be non exempt. Technically I could care less about what happens to his car, but I would rather not do this to him. Moreover, I'm actully planning to reaffirm his car, as he pays on time, it's only about 7 month left on the loan, and that way it will stay as a positive account on my credit report.

Also since the car is jointly owned I'm assuming that I only need to protect one half of equity, since the other half is his? Is this correct?

I emailed my trustee today asking whether he'll accept trade-in car values, but his paralegal replied that they cannot give legal advice. Was I really asking for a legal advice? I thought the trustee determines if correct value is used? Should I ask again?

2. For the 60 days worth of paystubs that I'm giving to trustee, do I look at the date of the paycheck, i.e when I actually got paid or date when the pay period ended. I got paid after I filed but for the days prior to filing.

Any info is greatly appreciated.

Thanks

[Tbornetun]

1. Use private party values. As for the cosigned loan with ex-boyfriend...you don't need to reaffirm anything. He can continue to pay the loan according to the terms and you will be off the hook. If he is making the payments now, it will be no different only that you won't be jointly responsible. Yes, half the equity is all you need to protect but it is rare that a vehicle has any equity to begin with.
2. I usually include 60 days plus 1 extra pay stub to make sure it's covered.

[tweety1]

I realize that I don't need to reaffirm. The reason I wanted to reaffirm, is so that account will not be listed as included in BK on credit reports, thus will help my score. It was always paid on time.

[Tbornetun]

They may still list it as IIB even if you pay as agreed. Keep that in mind.

[aljohnson007]

Also keep in mind, when you file pro se, you will have to go before the bk judge with your reaffirm agreement and if you are only a co-signer, I doubt it will get approved. Maybe someone else here knows more. Including it in your bk will not, in my opinion, hurt your credit score or help it if you don't.

[justbroke]

The majority of judges will not sign a reaffirmation when it's not in the best interest of the debtor. Over 90% of the time, this is the case. If you are underwater with the car by more than 10%, the Judge is likely to deny reaffirmation. However, a "ride-thru" may be available in your State, should you keep current on your vehicle.

I would absolutely, positively, never recommend someone reaffirm any debt, just to keep a positive tradeline on their credit report.

I emailed my trustee today asking whether he'll accept trade-in car values, but his paralegal replied that they cannot give legal advice. Was I really asking for a legal advice? I thought the trustee determines if correct value is used? Should I ask again?

Yes, it may be construed as legal advise, because you asked him (or it sounded to the paralegal like you asked them) "what number should I use". You have to be very careful in wording your questions. For example, if they tell you to use "Trade In", and that costs you money because you could have used "Private Party", they just given you bad legal advice. They don't want to be in that position.

So, use private-party "good" condition. If the Trustee doesn't like the valuation method, they will tell you.