Try to reaffirm a car but a big problem

[mhman]

I have two cars all are slightly underwater.

One bank I contacted said that they will send the re-affirm document to my attorney in a timely manner.

Problem is the Credit Union.
After I filed BK, I have contacted them to ask re-affrim. But they never responded me. I have left voice messages several times but no reponses at all.

Whenever I email them, they keep saying that they will forward my email to BK department then no response.....it's very weird. Today I found that CU reported it to credit bureaus and the balance is $0.

The auto loan is current.

Is there any possibility that CU refuses "reaffirmation" of the car with any reason? If the CU refuses to reaffirm, should I surrender the car even though it's current?

If it is their intention, I should stop paying it but I don't have any clues...

Any similar experience with CU?

[justbroke]

Is there any possibility that CU refuses "reaffirmation" of the car with any reason? If the CU refuses to reaffirm, should I surrender the car even though it's current?

A reaffirmation agreement by definition means that both parties agree. They do not have to reaffirm the car loan. If you are current and continue to pay, there's no need to reaffirm the loan. Please be aware, that's called a "ride-through" and not all Districts (States) agree that a debtor is entitled to a "ride-through" if they continue to pay on "personal" property (like a car).

No as to whether you should surrender, that would be up to you based on many factors, including, but not limited to your "ride through" ability.

If it is their intention, I should stop paying it but I don't have any clues...

Perhaps get a hold of the BK department directly and ask if they'll allow a ride-through. Call 4-5 times a day until they get tired of you and answer.

However, if you have other credit accounts at the CU, they probably won't reaffirm unless you reaffirm everything. This is due to cross-collateralization.

A reaffirmation agreement must be filed with the court before the dischargeability complaint bar date (60-days after the first schedule 341 Meeting). (That due date can change if you ask it to be extended.)

[StartingOver08]

You may be able to renegotiate the cross-collateralization out of the agreement. I did with my CU.

In my experience, the CU will not bring up this matter at all. You need to be proactive in contacting them and speak directly to the person handling your account in the BK dept. When I first filed the CU sent a reaffirmation agreement to my attorney and he just forwarded it to me and I noticed the balance on my car was substantially higher than the actual balance. So I contacted the BK dept and they said they were trying to recoup some of the expenses from the cc and 2nd mtg. I was able to have them remove the additional balance they tried to move over + remove the cross collateralization + skip a payment + reduce the monthly payment in the negotiations. They put in writing a new reaffirmation agreement and all of us (CU, me and the attorney) signed it and it was filed. I only reaffirmed because there was a small balance. Do what is best for you. Make the best deal you can make. Otherwise just ride through. Not all CU's or lenders will cooperate.

[mhman]

Thanks! JustBroke and StartingOver08.

It's really helpful to know what I need to prepare and what options I have with the CU.

One of the attorneys called to the CU BK department before I filed bk. The manager said that there is no cross-collateral clause with the CU. I still doubt about it though.
Only one thing I made sure before filing was that the CU will release the car title if I pay off the auto loan even though there is a balance in CC.

Based on the info above, I need to work more actively on the car.

Thanks again for your help. It's really helpful.......