B of A car loan in Chapter 7 filing - good news !

[idainc]

I am about half way through a 5 year not on a 2004 car with B of A. I owe about 2,000 more on the car than the KBB value. It is in perfect shape with new tires, battery and very low miles so I checked the reaffirmation box on the form.

I got a letter from the bank asking to send them the form and to call to discuss the loan. During the call I expressed my intent and the woman told me to just keep making payments but to never go over 45 days late after the discharge. Before the discharge is OK since they can’t repo the car but they will at 45 days post discharge. A real nice ride through!

She said that after the laws changed in 2005 they have had so much trouble with judges signing off on reaffirmation agreements that they have eliminated the option and just ask the customers to keep paying. They also do not report the loan and she said that if and when we want to get rid of the car for any reason to call and they will pick it up. “ If the engine breaks, if you get a better deal elsewhere, if you can’t afford it any more, etc “ The loan is reported as discharged in BK.

Perfect situation for a 6 year old car.

[justbroke]

Yes, perfect. The "ride-through" is always the best option. Congratulations on having a sensible lender.

[idainc]

I did have a bill on my desk and they offerred to work with me on it. I asked to delay payment 30 days and it wasnt an issue. But that raises the question - They cant take any collection action like a repo during the stay ( until its discharged ) so can I interpret that to mean that I can be somewhat lax with payments while the stay is on ?

[justbroke]

Do not get lax with payments. That's exactly the scenario that gets people in trouble You'll start thinking... hey I can put off this payment and use the 15 day grace and my next check will cover it. This will do nothing but put you into a downward spiral which will eventually, have you missing a payment by 30 or more days. Don't restart that cycle. End it now.

[blessed]

It's easier and less stressful to pay early! Just send them the money the day you get paid and you won't have to worry about a repo.

[idainc]

In conjunction with surrendering the house at the same time and all the associated costs of moving to a rental I would love the option to pay early. Have to watch every single cent in this economy. Bit at least they're up fornt so you know where you stand.

I think this option is grreat.

[pcn]

I think this option is grreat.

I bet they do too - you being willing to pay more than a car is worth...