Input needed asap please!!!!

[Ann]

As suspected I just got word from my lawyer that we may not qualify for a chapter 7 after all. One thing I'm so worried about is if we do qualify, and I do not reaffirm our cars, I was told that it is still very possible (and quite probable from what my attorney says) that one of our cars can be repossessed even if we continue to make timely payments. According to him my lender is quite notorious (GMAC) for doing just that if you do not sign a reaffirmation agreement. I only have 6 payments left and I cannot believe they would do so but again I've never been in this situation. Is there anyone out there that has any advice or input they could please be willing to share with me. Please... I am so tired of this and now even if I can do a chapter 7 I may still lose my car!!!

[justbroke]

If you only have 6 payments left, and are current... I don't see them repossessing that particular car.

[blockhead]

Gmac

I have 6 payments left and did not reaffirm. GMAC did file a proof of claim for the balance with the court even though I am a no asset case, but they accept my payments with no qualms. Not sure if this helps. One thing is check your state laws for vehicle repossession. In some states they cannot repossess if you are up to date with payments.

[Ann]

Thanks blockhead, I appreciate your input! Yes, my lawyer did say they can repossess even if you are up to date on payments in Michigan! He is not saying they WILL but that they CAN if they so desire and that they HAVE! Wow, still cannot believe this.

[Mensa1]

Any way to Redeem this debt? Have a close family or friend actually pay it off for you, provided that the equity in the vehicle could be exempted? MI Exempts: (motor vehicle up to $3.175). If so the angel could pay funds direct to creditor, not to you then to creditor, so as to avoid another potential issue.

[Dst1]

Thanks blockhead, I appreciate your input! Yes, my lawyer did say they can repossess even if you are up to date on payments in Michigan! He is not saying they WILL but that they CAN if they so desire and that they HAVE! Wow, still cannot believe this.

I don't understand. If you only have six more months to go why not just reaffirm.

[Ann]

Okay... that is what I say... but according to my lawyer... he would not sign these because basically what you are saying is that if I reaffirm a debt then you have "the means" to pay your debts. When filing a 7 you are stating that you do not have any positive income to make these payments. When a lawyer signs this he is stating that these payments will not cause any undue hardship on your part which is basically the opposite of what a 7 is all about. I know I know... maybe I don't have it exactly word for word the way he explained it (my head was spinning with all the negative info I was getting) but I think I pretty much have the idea. Does this make any sense to anyone???

[Mensa1]

Okay... that is what I say... but according to my lawyer... he would not sign these because basically what you are saying is that if I reaffirm a debt then you have "the means" to pay your debts. When filing a 7 you are stating that you do not have any positive income to make these payments. When a lawyer signs this he is stating that these payments will not cause any undue hardship on your part which is basically the opposite of what a 7 is all about. I know I know... maybe I don't have it exactly word for word the way he explained it (my head was spinning with all the negative info I was getting) but I think I pretty much have the idea. Does this make any sense to anyone???

No, it doesn't make sense that way... but it makes sense that IF you have future problems, after discharge... you could have major issues if you reaffirmed the debt. that is why you shouldn't, b/c default after disch = credit death, and maybe collections, for a long time.

[justbroke]

I don't understand. If you only have six more months to go why not just reaffirm.

That is the best strategy I read so far. The second is reaffirmation. Neither of those implies that you can "afford" all you debts... only those specific debts.