[HELP!] Is it possible to reaffirm? Negative Income.

[sjcmCA]

The 341 meeting was very short. Everything was good.

However, I got a reaffirmation letter from my attorney.

The expenses in Schedule J is higher than income in Schedule I, e.g., about $1,100 negative.

How can I reaffirm my auto loans in this situation?

If I reduce all my expenses, e.g., charitable contributions, membership, cell phone, child expenses, recreation, food, clothes, laundry, life insurance, medical expenses, etc., I will be able to change -$1,100 to +$130~150 per month.

There is NO PUBLIC TRANSPORTATION in my area. As such, I must reaffirm the two auto loans. (The first auto loan will be paid off in 6 months and the second one in 2 years.


Should I amend my schedule J to reaffirm the auto loans?
Would it trigger any problems to UST or Judge due to big change in the schedule J?


Any information and suggestion would be highly appreciated!

Thanks in advance.

[AngelinaCatHub]

Since you are represented, that is a question for your attorney. As far as reaffirming now, you may not be allowed to do so by the Judge. You are too close to owning a car in six months, don't reaffirm that one for sure and make sure you can finish the payments. The two year car, you would not wish to reaffirm as if you COULD NOT pay it, you can be sued. It would be better to have half of something than both of nothing. My opinion. 'Hub

[sjcmCA]

Since you are represented, that is a question for your attorney. As far as reaffirming now, you may not be allowed to do so by the Judge. You are too close to owning a car in six months, don't reaffirm that one for sure and make sure you can finish the payments. The two year car, you would not wish to reaffirm as if you COULD NOT pay it, you can be sued. It would be better to have half of something than both of nothing. My opinion. 'Hub

Thanks for your quick response!
But I can't understand your advice well.

If I don't reaffirm the 6-month one, how can I get the title after paying it off?
It meant that I just do "ride-through" and surrender it later?
Or can I still get the titles after paying off the two loans without the reaffirmation?

My question was that if I can amend the Schedule J (e.g., Reduce all my expenses - charity, child expenses, foods, insurances...), I CAN pay both loans every month. Will this amendment be ok?

Even though it's tough to reduce all the expenses, but it's much better than living without cars in No Public Transportation Area.

I will contact my attorney early next year but more clarification would be very helpful to prepare for the right decision. I always appreciated your good advices, Hub.

[AngelinaCatHub]

Thanks for your quick response!
But I can't understand your advice well.

If I don't reaffirm the 6-month one, how can I get the title after paying it off? They will send you the Title.
It meant that I just do "ride-through" and surrender it later?
Or can I still get the titles after paying off the two loans without the reaffirmation? Yes you can. They don't want your cars, they want your money. As long as you stay current they will not and CAN NOT repo the cars. However, if you CANNOT pay one of them, you can let it go without a Judgment against you.

My question was that if I can amend the Schedule J (e.g., Reduce all my expenses - charity, child expenses, foods, insurances...), I CAN pay both loans every month. Will this amendment be ok? This is what I cannot answer. Can you successfully cut back that much? If you can, without amending, after your 341, just do it. It is not fraud to use your money a different way than you listed it. As long as it is within the boundaries of necessity.

Even though it's tough to reduce all the expenses, but it's much better than living without cars in No Public Transportation Area. Agreed.

I will contact my attorney early next year but more clarification would be very helpful to prepare for the right decision. I always appreciated your good advices, Hub.

I wish I could help more. Perhaps when folks wake up and start searching, some will chime in with more legal opinion than I am prepared to give. Still, best to go ahead and talk to him after the first. But I hear that is next year. LOL. Happy New Year

[sjcmCA]

I wish I could help more. Perhaps when folks wake up and start searching, some will chime in with more legal opinion than I am prepared to give. Still, best to go ahead and talk to him after the first. But I hear that is next year. LOL. Happy New Year

AngleinaCatHub.....I really appreicated your time and advice.
You can't imagine how helpful your advice is.

I didn't know that I can still get the titles without reaffirmation. (Both auto loans are current.)

It's very very helpful to prepare a right question for my attorney who is extremely busy. I always got a good answer from the attorney when I was really well prepared.

Thanks again and Happy New Year!!!

[AngelinaCatHub]

And thank you. It is good to write down your questions as if like me, my mind goes blank once in front of one.

BTW, what keeps you up so late, or up early?

[justbroke]

My question was that if I can amend the Schedule J (e.g., Reduce all my expenses - charity, child expenses, foods, insurances...), I CAN pay both loans every month. Will this amendment be ok?

Don't amend your Schedules just so you can reaffirm something. It is highly likely that your attorney won't even agree to sign your reaffirmation. As stated, you really need to work with your attorney on reaffirmations, because they have to sign off on them!

Signing a reaffirmation may not be in your best interest anyhow. Always use the so-called "ride-through" option if available. A ride-through allows you to keep (retain the property) and continue to pay. Nothing changes in how the loan is dealt with, except that on your credit report, it will read as IIB (Included In Bankruptcy).

[sjcmCA]

Don't amend your Schedules just so you can reaffirm something. It is highly likely that your attorney won't even agree to sign your reaffirmation. As stated, you really need to work with your attorney on reaffirmations, because they have to sign off on them!

Signing a reaffirmation may not be in your best interest anyhow. Always use the so-called "ride-through" option if available. A ride-through allows you to keep (retain the property) and continue to pay. Nothing changes in how the loan is dealt with, except that on your credit report, it will read as IIB (Included In Bankruptcy).

Great! Now I have a better understanding on the reaffirmation thing.

For the first time, the attorney told me that I can keep the both cars so I will contact him to find out the best solutions on this issue.

AngelinaCatHub and JustBroke, I really appreciate your help. You are all angels to me

Happy New Year!

P.S.: Since I joined this forum, I could make one of the best decisions in my life, e.g., Fresh Start!

No more depression...No more fear on BK since I understand it well!

[LimpDisc]

As already stated, nothing changes with the loan. Continue to pay the loan according to the terms and when paid for you will receive the title.

[tdawg]

I thought Ford (and one other lender) don't allow ride-throughs... Who are your loans through?

[AngelinaCat]

If I don't reaffirm the 6-month one, how can I get the title after paying it off?
It meant that I just do "ride-through" and surrender it later?
Or can I still get the titles after paying off the two loans without the reaffirmation?

I will contact my attorney early next year but more clarification would be very helpful to prepare for the right decision. I always appreciated your good advices, Hub.

'Hub is advising you to do the ride-through on the 6th month car. You keep making your payments as normal. Keep them up to date. Once the loan is paid off, your title will be sent to you.

If you can also do a ride-through on the two year car, that can be advantageous to you. If at some point in making the payments, you fall behind and end up having to surrender that one, then you are done, and you walk away owing nothing.

BUT if you reaffirm the loan, and default on it with say $6,000.00 still left onn the loan, the creditor will take your vehicle, and sell it at auction. Say that the car sells for $3,000.00. You will be sued for the difference of $3,000.00, since you reaffirmed that loan--guaranteeing that you would be responsible for it no matter what. That debt will not be discharged.

I hope that helps explain it better.

[sjcmCA]

'Hub is advising you to do the ride-through on the 6th month car. You keep making your payments as normal. Keep them up to date. Once the loan is paid off, your title will be sent to you.

If you can also do a ride-through on the two year car, that can be advantageous to you. If at some point in making the payments, you fall behind and end up having to surrender that one, then you are done, and you walk away owing nothing.

BUT if you reaffirm the loan, and default on it with say $6,000.00 still left onn the loan, the creditor will take your vehicle, and sell it at auction. Say that the car sells for $3,000.00. You will be sued for the difference of $3,000.00, since you reaffirmed that loan--guaranteeing that you would be responsible for it no matter what. That debt will not be discharged.

I hope that helps explain it better.

Yes, it's 100% clear now. I understood in a different way about the reaffirmation until I listed this thread. I appreciated.

HAPPY NEW YEAR, ALL GOOD NEIGHBORS!

[jribe]

why not just continue paying on the loans without reaffirming?

There's no real upside for you to reaffirm. It's just to protect the lender. If you stay current, they won't repo you (*unless you have FMC)

Granted, most likely they will not report to credit bureaus, but then if something happens and you can pay- you're not liable.

The 341 meeting was very short. Everything was good.

However, I got a reaffirmation letter from my attorney.

The expenses in Schedule J is higher than income in Schedule I, e.g., about $1,100 negative.

How can I reaffirm my auto loans in this situation?

If I reduce all my expenses, e.g., charitable contributions, membership, cell phone, child expenses, recreation, food, clothes, laundry, life insurance, medical expenses, etc., I will be able to change -$1,100 to +$130~150 per month.

There is NO PUBLIC TRANSPORTATION in my area. As such, I must reaffirm the two auto loans. (The first auto loan will be paid off in 6 months and the second one in 2 years.


Should I amend my schedule J to reaffirm the auto loans?
Would it trigger any problems to UST or Judge due to big change in the schedule J?


Any information and suggestion would be highly appreciated!

Thanks in advance.