Reaffirming Car in CA?

[Moneypenny]

Hi,

are there any special considerations i should have with regard to pro and con of reaffirmation in CA? (i.e. special laws etc.)

An attorney seemed to encourage reaffirmation and now I am wondering why.

Is there some new trend brewing?

I have a loan from a Credit Union, not a big motor company or anything.


thanks,

MMP

[Logan]

My attorney said not to reaffirm.

Logan

[OutofTime]

I have 2 years left on a truck that is close to needing large maintenance expenses and my lawyer didn't say I should reaffirm but placed "continue to make payments" which in my eyes is a good thing in case I end up just walking out on my loan.

[BobMango]

I think CA was mentioned in a previous thread because some locations do not allow the "ride-through" and you must either reaffirm or surrender the vehicle. I believe CA does allow the ride-through so there is generally no reason to reaffirm a vehicle.

Just check some of the postings. You rarely if ever see anyone posting that they really really wished they had reaffirmed. On the other side, lots of folks regretting the decision to reaffirm.

When you reaffirm you are giving all the leverage to your lender and taking away any option you have to resolve that debt, other than paying in full.

I did reaffirm, but did so because my lender was willing to lower the payment by $230 a month and skip a payment to get me current. I also have less than 2 years left and more than $10K in equity, so all those factors came together to make reaffirmation the right decision for me. I'd say in about 99% of the cases, reaffirmation is a bad idea.

[OutofTime]

hey bob, did you negotiate the reaffirmation after you filed and were discharged?

[BobMango]

hey bob, did you negotiate the reaffirmation after you filed and were discharged?

Nope, I called them the week after filing and told them I wanted to keep the vehicle. This loan was with a local credit union, which I understand is easier to work with than the big lenders.

The reaffirmation has to be signed by your attorney (if you have one) and filed with the court prior to discharge. You also have to show a positive DMI or will need to provide an explanation to the judge as to why it won't be a hardship.

[liboton21]

I have a car loan with NFCU and filed ride-through but bank responded for reaffirmation. I did sent them an estimate of fixing the head gasket leak and ask for a FMV for the car no response so far. And my discharge is this month. I read in this post that if you are in CA and current the bank will not repo and I am current so far.