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Chapter7 and Rearrifmation agreement.

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    #1

    Chapter7 and Rearrifmation agreement.

    I have the reaffirmation agreement from Chase which states the ammount to reaffirm - 13,942 and the current market value of my car - 15,525. I tried to negotiate with the bank about the value, since my car was in an accident and also has dents all over the car from hail and a 3foot long scratch from a key. The bank is simply ignoring me but I beleive that the value of my car is less than the bank stated on the RA.

    If I don't sign the agreement what would the bank do? I am pro se, and an additional court meeting is required in case of a signed RA.

    And also, would it be in my favor not sign the RA and pay the car off completely at 13,942 dollars after the discharged is executed?
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    #2
    If you are current on the payments, most likely the bank will do nothing. I would not sign the reaffirmation under those circumstances. I did sign a reaffirmation but I had $10K equity and got them to reduce my payments.
    Case Closed > 2/08/2010

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      #3
      I wouldn't reaffirm that much on a vehicle that has that kind of body damage but that's just me. If you keep the payments current they probably wont' do anything.
      4/09 Converted to a Ch 7 due to loss in dh's income
      5/09 UST now involved no idea what happens next
      7/09 UST has decided to withdraw his motion to dismiss!
      7/27/09 DISCHARGED!!!

      Comment

        #4
        Thank you for the replies. So then what is whole purporse of the RA?...and how can I convince the bank that the value of the car is much less than the blue book value. Is there any value in providing an independant appraisal?

        Comment

          #5
          Originally posted by makarena View Post
          So then what is whole purpose of the RA?...and how can I convince the bank that the value of the car is much less than the blue book value. Is there any value in providing an independent appraisal?
          Typically RA's are only for the banks benefit and not normally recommended to sign. Think long and hard before doing this.

          Also, if the car has physical damage which has not been repaired that really falls on your shoulders, as with any car financed it should have had full coverage insurance and should have been repaired.
          The bottom line is, it does not matter what the bank says the value of the car is, what really matters is are you going to allow yourself to be held to a contract which you don't seem to want.
          Last edited by NoMoreCards; 03-19-2010, 07:21 AM. Reason: typo - spelling
          8-07-09-filed Chapter 7
          11-18-09-DISCHARGED!!

          Life is not what challenges you face, but how you face those challenges.

          Comment

            #6
            I believe ch. 7 still gives you the right to redeem secured property - by paying in full what its currently worth. I would have no idea about how to go about such a process. Perhaps you could ask the BK court clerk in your district if there is particular paperwork for that. Though you'd need to have the payment in full, and that is not so realistic in bankruptcy.

            If there is a CArmax near you, I believe they will give a written quote/offer on any vehicle. Even if you're not buying a car/trading in thru them.
            Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
            (In the 'planning' stage, to file ch. 13 if/when we have to.)

            Comment

              #7
              Originally posted by SMinGA View Post
              I believe ch. 7 still gives you the right to redeem secured property - by paying in full what its currently worth. I would have no idea about how to go about such a process. Perhaps you could ask the BK court clerk in your district if there is particular paperwork for that. Though you'd need to have the payment in full, and that is not so realistic in bankruptcy.

              If there is a CArmax near you, I believe they will give a written quote/offer on any vehicle. Even if you're not buying a car/trading in thru them.
              You can go through 722 redemption to redeem. But it doesn't seem like you are upside down on your loan, so that won't work. Maybe I am confused, but it sounds like your loan amount is less than the car value, so I'm not understanding what you are trying to have done. So is Chase stating the value of your car is $15,525 and your current loan amount they are requesting you reaffirm to is $13,942?

              Even if they reduced your value by $1500, why would that matter?

              They don't care how damaged your car is. They state you owe them $13,942, so that is what they want.
              I am not an attorney and any advice given is simply opinion based on my personal experiences. Always ask an attorney before making legal decisions.

              Comment

                #8
                My main intention was to get the bank to agree that the value of my car is considerably less than what they think its worth. I owe approximately 14,000, but the bank thinks the car is worth over 15,000. I want the bank to agree that the value of the car is less than 14,000 so that I will owe less to the bank than the balance. There is no way my car would sell for 15,000 on the open market. How can I prove to the bank that the value of my car is less than the 14,000 I owe. Edmunds suggests my car is worth around 11,000.

                Comment

                  #9
                  Originally posted by makarena View Post
                  My main intention was to get the bank to agree that the value of my car is considerably less than what they think its worth. I owe approximately 14,000, but the bank thinks the car is worth over 15,000. I want the bank to agree that the value of the car is less than 14,000 so that I will owe less to the bank than the balance. There is no way my car would sell for 15,000 on the open market. How can I prove to the bank that the value of my car is less than the 14,000 I owe. Edmunds suggests my car is worth around 11,000.
                  You can try to go through 722 Redemption. It's free to get a quote. They will provide you a value of what they think your car is worth and will present their info to the bank. The bank will then either have to accept it, continue with the reaffirm request, or request you surrender the car. If the car is truly worth a significant amount less and the bank feels they can't get more out of it, they may accept the deal thru 722. The redemption loan is issued by US Bank.

                  I don't think any paperwork you give Chase will change their mind. They want what is owed, they don't want to lower your loan amount and by no means are they required to.
                  I am not an attorney and any advice given is simply opinion based on my personal experiences. Always ask an attorney before making legal decisions.

                  Comment

                    #10
                    Yeah, I already spoke with them... they gave me the same number for the value as Chase did. Thank you for your time anyway. I'm now thinking to offer them a payoff which is less than the amount owed. Is it reasonable to do this?

                    Comment

                      #11
                      Originally posted by makarena View Post
                      Yeah, I already spoke with them... they gave me the same number for the value as Chase did. Thank you for your time anyway. I'm now thinking to offer them a payoff which is less than the amount owed. Is it reasonable to do this?
                      It doesn't ever hurt to try. The only thing they can do is say now. However, I think if you give them a lump sum payment, wouldn't that be considered a preferential payment?
                      I am not an attorney and any advice given is simply opinion based on my personal experiences. Always ask an attorney before making legal decisions.

                      Comment

                        #12
                        I am planning on borrowing money with no interest from my friend, and deal with the car lender after my case is closed. I am not going to sign the RA. Does it make any sense?

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