C 7, Credit Union- keeping car, but added loan attached to car reafirmation

[1kentwon]

I have filed Chapter 7, I had my 341 on January 21, 2010, It went swell, however Credit Union has added an unsecure loan which I cannot afford, to my car reaffirmation. How do I get them to negotiate? I have asked my attorney to work on it with the CU lawyers, however, I wonder if I should of handeled it myself. Any advice is appreciated.

[StartingOver08]

My CU tried the same thing. I just called the CU BK dept and spoke to them directly. They removed the unsecured portion that they were trying to add to the balance. I also was able to get the CU to reduce the monthly payment, skip one months payment, and added a provison about sending the title as soon as the debt was paid. They did (I pd it off Nov).

All of this was in writing in the reaffirmation. I had them rewrite it according to the new negotiated agreement. The reaff was signed by all and filed before discharge.

However, if they were not going to do it, I was prepared to do a ride through or a surrender of the vehicle.

Try calling your CU's BK dept and work it out directly (check with your attorney first to see if he hasn't already accomplished it).

[1kentwon]

Thankyou ! Startingover08, for your information

Thank you for the information , I am really freaking out - I just want the car - that is my goal.

[1kentwon]

Regarding my Credit Union working with me on a car re-affirmation, well I just heard from my Lawyer, he only spoke with the CU lawyers about re-affirming the car without the loan, and he got no where with them. He agreed I should try to call the credit union bankruptcy department if they have one. My lawyer is going to try another e-mail to the CU lawyers, saying I am willing to pay a small monthly payment for the loan also, what the payment amount is now is huge. Not affordable, this CU is what sent me into BK. My lawyer says the credit union has a policy, they will not make acceptions, at least not yet. I will have to call the CU, see if I can get somewhere.

[BCA2009]

I'm worried about the same thing happening with my CU, but if they won't drop the ccard balance, they can have the car back, even though I want to keep it. They can't come out ahead, becasue I owe just about what it is worth. I'll wait and see.

[1kentwon]

Regarding CU not working with re-affirmations that will work for client

Yes, it is a real nightmare, this credit union does not appear to want to work with people in bankruptcy. It is unbelievable, the CU would rather take a loss of a total of 14,000 dollars between the car and an unsecured loan, for the price they will get for the car at auction, because they want to apply one rule to everyone who wants to re-affirm a car, whether the debtor is capable of paying the car and loan together or not, in my case, I just do not have the ability to make the huge monthly payment for both debts. It is over 500. 00 dollars. I will try to call the credit union to work something out without their lawyers involvement.

[BKInLA]

Would you mind telling us which CU this is? Maybe just use abbreviations, if that makes you feel comfortable.

I may have the same issue with my CU since my mortgage, car and one CC are all with them. I want to keep the car and house but not the CC, obviously.

[flyinbroke]

It may be many of them. I am in the lawyer search mode, and looking over some of the forms you fill out for them. Almost all ask if you have banking/loans with a credit union.

Thing is, I make a decent living and would gladly reaffirm my debts with my CUs if it meant keeping cards intact...I had decent credit lines and interest rates. My "render me broke" issues are with big banks who refuse to work with you until you quit paying...once you do that though, you are screwed with all their fees and ratejacking.

[1kentwon]

Regarding

I just got off the phone with the bankruptcy department at my credit union. They do have a bankruptcy department, they told me to fax a proposal on what I can do. She told me she will give it to the loan officer. I wish I had called before, but I did not because none of my attorneys guided me in that direction. I do not know if it will work, sending a proposal, but I will try. The Credit Union is Credit Union One. One other thing that threw me for a loop, was after the 341, my attorneys did ask me to contact Credit Union One regarding the re-affirmation, but the credit union attorney's faxed the re-affirmation to my attorneys almost immediately. Someone in my attorney's office mailed it to me without reading it, which only confused things. But this kept me from the phone call to the bankruptcy department at Credit Union One. I wish I had been able to talk to the bankruptcy department at Credit Union One before their attorneys got involved. Some where I think I should of seeked out more advice. I had referred to the potential problem with re-affirming the car to three different attorneys in my attorney office. But that I think is probably just another part of the bankruptcy learning / problems/pitfalls experience.

[1kentwon]

Chapter 7 - Any Advice? Credit Union told me to send a request with the terms on how I want to re-affirm the car and the loan, told me to really think about how I want to handle it. Now I am panicking on whether I should just start out with terms asking for the loan to be discharged while reaffirming the car or would that be pushing the envelope? Any advice? I e-mailed my lattorney to let him know. Although I have to admit I am a little po at them for what I feel was a lack of insight/information/informing on their part. My attorney has also sent an e-mail follow-up attempt to the credit union attorneys, who are not willing to discharge the loan. I am not sure if my attorney should advise me on the terms I send to the credit union, wait to see how far he gets with the credit union attorneys?

[1kentwon]

Ch 7-Unsure! any experiences with negotiating car/loan reaffirmation?

Regarding my Chapter 7 bankruptcy - I have seen some of the BK FORUM posts refer to waiting a couple of weeks after 341 before contacting creditor about a re-affirmation for a car / loan?, is there an advantage or leverage in waiting it out before trying to negotiate?

[mamaluv]

I would ask to reaffirm the car loan only...I wouldn't sign a reaffirmation agreement that included any part of the other loan. Not worth it-especially if the loan is a large balance. I reaffirmed my auto loan with my CU and luckily they did not try to tack on my CC balance.

[1kentwon]

Regarding car re-affirmation in my Chapter 7 bankruptcy- The loan amount which the credit union wants to add along with the car reaffirmation is 8000 dollars, the payment is around $245.00, the car is $145.00 a month, I agree with your suggestions not to include the loan, I cannot afford it. I have come across an interesting document just created on 12/09/2009, by Eastern Michigan Bankruptcy court which has to be attached to the re-affirmations of cars when submitted to the court. It actully has a spot on it where the information from the filed schedules is recorded, with the reaffirmed payments subtracted from my monthly net income. It clearly shows if the debtor could afford to reaffirm. Very interesting - also another new document which states lawyers have to be involved in reaffirmations submitted to courts. I was starting to wonder if these lawyers are were for real. The lawyers I have led me thinking re-affirming the car would happen without a problem or without much of a problem. My lawyers no longer seem to be much of a help in the matter, certainly not very encouraging.

[1kentwon]

My chapter 7 car reaffirmation- I am getting ready to send a reaffirmation agreement to the credit union , although I may hand carry it. Beware of attorneys. Now, I have instructed my attorney's office to call me if they get anymore documents for my review, so I can come in to review the documents in person. This is important to me, I explained that too much is lost in translation between the attorneys and myself. I did not want mis-communication, actually it is a controlled evasion on their part, because the lawyers did not listen to me, assured me in the consultation for their services that I could keep my car and get rid of the credit union loan, not the case. I want to nip the communication issues in the bud. I have been informed that my $1500.00 retainer is gone. They charged me $88.00 dollars to mail me a reaffirmation faxed from the C.U. attorneys to my attorneys, a document with terms which in no way I can sign. They wasted their time and mine, and ruined my weekend because I got the letter on a Saturday. A partner in my attorney's firm had the fax for 5 days before they decided to mail it to me. My contention is they should of called me so I could of come in to review the document, point blank in person, to reject it. I thought it was very cruel of them to send me a reaffirmation in such a manner. They talk the talk but do not want to walk the car reaffirmation walk. I am going to hand carry the reaffirmation document to the c.u. hope I can work something out with the c.u.

[wickedlate]

IMO if the CU will not dump the CC then let them have it all back.