Question about creditors reporting late payments after filing BK

[lalap123]

I am planning on keeping my car after my BK is discharged, but I'm currently late on last month's payment. I'll be able to catch up by this month's due date (20th), but I will have had a payment late by 30 days.

From what I've read on here it looks like creditors can't report late payments during the bankruptcy process (after you've filed). Does this mean I'll not be reported for any late payments during this time at all, or does it just mean that they will "back-report" any missed/late payments after the case is discharged?

Does my question make sense??

[BobMango]

If you do not reaffirm that debt then it will be discharged and should not be reported post bankruptcy, adversely or otherwise.

[lalap123]

I'm actually planning on reaffirming and keeping the car, so does this mean that they will report to the credit agencies retroactively?

[BobMango]

I'm actually planning on reaffirming and keeping the car, so does this mean that they will report to the credit agencies retroactively?

I reaffirmed and my credit union is reporting. I was over 60 days late when we filed and they were nice enough to remove all previous late payment reports, drop the payment from $635 to $400 and advance the loan to bring me current. I've been paying about 1-2 weeks early since reaffirming and they continue to report "pays as agreed".

So my advice is that if you are going to reaffirm, try to get some modifications that will help you post discharge.

[lalap123]

Wow...did you do that with your attorney's help or did you do it on your own? My auto loan is with a pretty large bank (the auto financing division of Wachovia)...is it only smaller banks or credit unions that will do this?

[BobMango]

My attorney advised me to call them after we filed, but I handled all of the negotiations. I was really worried about it since we had about $11K in equity in the vehicle on the low end. So the end result is that the amount owed and interest rate did not change, they just extended the loan for 5-6 months.

In general I think you will have better luck getting these kinds of adjustments from smaller banks and credit unions, but it never hurts to ask. I'd start out telling them you want to reaffirm but need to explore some adjustments to make sure you can handle it after discharge. The worst thing that can happen is they say no. Most folks get ripped off in negotiations because they care what the other side thinks of them. I don't. Plus it helps to be willing to walk away.