Ridethrough vs Reaffirmation

[dakota112]

I filed 2 weeks ago and my atty notified me today that AHFC wants me to reaffirm my leased vehicles I have with them. He advised I not reaffirm them. My income has not increased as I had hoped it would. Will this mean I will lose the vehicles for sure or will Honda Finance allow me to keep them as I am current as long as I pay every month? I can only hope my income will increase enough before the 341 so that I could convince a judge I can pay for them. Will a landlord on an apt with 7 months left on the lease also evict you if you are current but do not reaffirm the lease?

[OhioFiler]

The landlord can't evict you unless you are behind on your rent payment.

If your attorney advised you on the vehicle it's most prudent you follow his advice.

[AngelinaCatHub]

I certainly agree with 'Ohio". You pay him big money for advice.

Most places I know who sell cars only want the money. They don't want your car. Pay through is the best advice as things could get worse and you cannot walk away from a reaffirmation. You give up the bk rights on a reaffirm. 'Hub

[liz417]

I have AHFC too for one of my vehicles (although not a lease) and I did not reaffirm with them on advice from my attorney. I continue to make payments but no longer get statements and the loan from the Honda shows as "IIB" on my credit reports

[thefetterlys]

Didn't reaffirm...did ride thru

I acutally just ahd a hearing last week on the reaffirmation agreements for our vehicles. We decided to surrender one since we were upside down anyway. The judge said that reaffirmation agreements are not in any consumers best interest, he said that he has denied thousands of reaffirmation agreements and the debtor has made arrangements with the creditor. As long as you are upto date on payments and maintain insurance you should be okay! We told the judge to deny the reaffirmation and have made arrangements with the creditor to keep the car and continue automatic payments. All is well. With a reaffirmation if you want to surrender the vehicle or if you are in an accident, ect. You are still responsible for the remaining balance. Without a reaffirmation you can actually surrender the vehicle any time and it is still clean from your credit report.

Good Luck.. we filed on 11/02/2009, waiting for discharge on 02/02/2010. Filed Pro Se, no attorney or lawyer...

[NoMoreCards]

When I filed, I had 2 leased cars from Honda. I reaffirmed one, and returned the other. Honda does not allow ride-thru's according to my attorney.

The one that was reaffirmed, I was only a co-signer on and it belonged entirely to my daughter. She has always and continues to make every payment and the lease is close to being over.

I had a rough time getting judge approval, but he granted it because I proved that she made all payments.

You pay your attorney for their advice, think long and hard before rejecting it.

[JJ888]

Same boat as you guys. I have AHFC for my car. I am upside down about 9K and current in my payments. Attorney says not to reaffirm and surrender car due to the fact that Im upside down on the loan (remaining balance is $30K,value of car is $21K). Attorney suggested to just buy a used reliable car. The car is in excellent condition/reliable and its less than 2 years old with no problems.

If I call Honda to reduced the principal to market value, do you think they will renegotiate? Any experiences dealing with them?

[dakota112]

Reaffirmation

Si if they are inevitably (AHFC) going to take my leased vehicles back, and I am not going to reaffirm them as my atty advises I do not and she will not, should I stop paying on them? Would that let me hold onto them until the discharge comes through? or will they repossess them before the discharge?

[OhioFiler]

Si if they are inevitably (AHFC) going to take my leased vehicles back, and I am not going to reaffirm them as my atty advises I do not and she will not, should I stop paying on them? Would that let me hold onto them until the discharge comes through? or will they repossess them before the discharge?

Inevitable on completion of the lease terms.

They can't repossess the vehicles while the automatic stay is in force.

If you want to keep the cars, keep paying. If you don't want to keep them return them after your discharge.