When we filed we have a statement of intention included that states we will retain our home and truck and keep making regular payments. We have kept our mortgage and truck payments current. Is reaffirmation necessary or is this enough for use to see out the loans in PA?
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Filing the statement of intention does not obligate you to retain or reaffirm the debt. It simply notifies the BK court of your intentions toward your secure property. Retaining means you would have to pay the balance of the loan immediately. Reaffirming would legally obligate you to continue loan payments. Contact your creditor(s), or have your lawyer do it, and inquire about retaining or reaffirming. If the creditor agrees to reaffirm, they will provide the paperwork and that must be filed with your BK and approved by the BK judge.
If you are current on your mortgage, you can probably "ride through," that is continue to send your monthly payment and stay in the home without reaffirming the loan. Then, if your situation worsens you can walk away from the house without being responsible for the debt.
For sure, check with your attorney and the creditor before making a final decision on reaffirmation. If you reaffirm those loans, you are accepting full legal responsibility for the debt. That's why most attorneys, and most people here, recommend against reaffirmation.Last edited by bktek; 02-06-2010, 08:47 AM.09/28/2009: Filed Chapter 7 (Pro Se)
10/27/2009: 341 Meeting of Creditors
12/28/2009: Last Day for Objections
01/22/2010: DISCHARGED
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Originally posted by bktek View PostFiling the statement of intention does not obligate you to retain or reaffirm the debt. It simply notifies the BK court of your intentions toward your secure property. Retaining means you would have to pay the balance of the loan immediately. Reaffirming would legally obligate you to continue loan payments. Contact your creditor(s), or have your lawyer do it, and inquire about retaining or reaffirming. If the creditor agrees to reaffirm, they will provide the paperwork and that must be filed with your BK and approved by the BK judge.
If you are current on your mortgage, you can probably "ride through," that is continue to send your monthly payment and stay in the home without reaffirming the loan. Then, if your situation worsens you can walk away from the house without being responsible for the debt.
For sure, check with your attorney and the creditor before making a final decision on reaffirmation. If you reaffirm those loans, you are accepting full legal responsibility for the debt. That's why most attorneys, and most people here, recommend against reaffirmation.Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick
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My attorney advised us to not reaffirm. I was just making sure we could still retain home and vehicle with current loans and that as long as we continue to keep them current we can eventually own it all. Since my chapter 7 turned asset after I was assured of exemptions by my lawyer, I am questioning everything.
12-4-09 341 hearing
1-27-10 trustee objection to exemptions
2-25-10 hearing scheduled to answer objections
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Originally posted by bktek View PostYou cannot be forced into a reaffirmation agreement.
Reaffirm
Pay it off
Give it up
Ride through was not an option.1/15/10 Filed ch7 2/18/10 314 meeting
2/22/10 Report of No Distribution
4/20/10 Discharged 5/20/10 Closed!
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Originally posted by Backlyn View PostMy attorney advised us to not reaffirm. I was just making sure we could still retain home and vehicle with current loans and that as long as we continue to keep them current we can eventually own it all. Since my chapter 7 turned asset after I was assured of exemptions by my lawyer, I am questioning everything.
The vehicle may be a different matter. I've read several times on this forum that vehicles have been repossessed even if the loan was current.09/28/2009: Filed Chapter 7 (Pro Se)
10/27/2009: 341 Meeting of Creditors
12/28/2009: Last Day for Objections
01/22/2010: DISCHARGED
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Originally posted by pcn View PostMaybe not, but in our district we were told that we had 3 choices:
Reaffirm
Pay it off
Give it up
Ride through was not an option.09/28/2009: Filed Chapter 7 (Pro Se)
10/27/2009: 341 Meeting of Creditors
12/28/2009: Last Day for Objections
01/22/2010: DISCHARGED
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Originally posted by pcn View PostMaybe not, but in our district we were told that we had 3 choices:
Reaffirm
Pay it off
Give it up
Ride through was not an option.
Give it up may well be a ride through.
Just because those are the only legally defined choices doesn't mean the creditor and debtor have to do such a thing. You can choose to surrender the asset but post-discharge keep it and keep paying for it. It defaults to a ride through. The court will not come back to you and the creditor and force you to return the asset.Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick
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Originally posted by OhioFiler View PostGive it up may well be a ride through.
Just because those are the only legally defined choices doesn't mean the creditor and debtor have to do such a thing. You can choose to surrender the asset but post-discharge keep it and keep paying for it. It defaults to a ride through. The court will not come back to you and the creditor and force you to return the asset.
And the car?
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