Signed petition paperwork today/question about Ford Credit

[wonderingrov]

Well, I met with my attorney today to sign all the paperwork associated with my petition. Everything went well. It looks like the petition will be filed electronically by the end of the week.



I did have one question - it looks like she will a little hesitant to sign off on a reaffirmation agreement with Ford Credit as it may constitute a hardship. My payment is only about $250 a month, but with my income level right now, she said it could potentially create a hardship.

I've seen conflicting information on ride-throughs on the board. I just wanted to get some input on the chances of them allowing a ride-through without reaffirmation. I've got a little less than 2 years left to pay on the loan, and have never been late on a payment (and actually, have had 3 prior loans with them in years past with no late payments - those are all paid off now). I know they will most likely cut off my online access and stop sending statements - just wanted to check and see if anyone had been able to go the ride-through route with them.

[car67]

Ford requires you to reaffirm no matter what ,,,, Been there done that

[justbroke]

Ford Motor Credit generally doesn't allow ride thrus. That's all I can really say about that. Also, some Districts, like Florida, don't allow ride-thrus on any "personal" property... especially a car. Now, whether the lender enforces this or not, is an entirely different story.

But then, I say read the first sentence, in this response, again.

[wonderingrov]

Ok, thanks for the information. If my attorney does end up giving me a hard time signing off on the reaffirmation, sounds like I'll need to work from the argument that not having transportation would be more of a hardship than the reaffirmation.

[keepmine]

[rpertusio]

We're attempting a ride-though w/ Ford Credit.

A few days after the BK was filed, Ford Credit reduced online access. When you attempt to log in, You'll have to click "Accept" to agree that "Any information on the site is not an attempt to collect or enforce your contract." You'll click 'Accept' again. (You have to click 'Accept' 2 times, each and every time you access your account.)

You cannot pay your bill online, but you can see Payment History and 'due dates'. We have continued to pay with hopes that we can ride through, but we're accepting the risk that they'll repossess the car.

We've heard nothing from Ford Credit directly. There was only a "Notice of Appearance" filed before the 341 (basically indicating that they received the BK notice and were officially acknowledging it.) Ford Credit did not show up at our 341. We're day 4 after our 341 meeting.

I'll update this thread if you're interested in the outcome.

- rp

[AlmostAmos]

I'm definitely interested in this also. I have a fairly new loan w/ Ford Credit (purchased in March). My attorneys are both telling me that I DO NOT need to reaffirm the loan in the state of Virginia. They are telling me that Ford can't do anything providing I pay the loan on time and never miss a payment. But, they will consider a reaffirmation if I'm worried about it. Anyone know what the laws are in VA? I've searched until my fingers are sore!

[rpertusio]

I'm definitely interested in this also. I have a fairly new loan w/ Ford Credit (purchased in March). My attorneys are both telling me that I DO NOT need to reaffirm the loan in the state of Virginia. They are telling me that Ford can't do anything providing I pay the loan on time and never miss a payment. But, they will consider a reaffirmation if I'm worried about it. Anyone know what the laws are in VA? I've searched until my fingers are sore!

AlmostAmos, you might want to sign the reaffirmation, or prepare for the possibility of reposession. Virginia is part of the 4th Circuit Court (which also includes West Virginia, North Carolina, and South Carolina.)

In this W. Virgina case, it was ruled that the 'ride-through' ('retain and pay') option was eliminated, and that filing bankruptcy automatically caused the car to be in 'default'. Therefore Daimler Chrysler could repossess the car (which they did) even though payments were current and paid during bankruptcy.

http://www.bkforum.com/showpost.php?p=371732

[wonderingrov]

Thanks - this is some good information. I'll run this by her. I'll be filing in the Northern District of Georgia. I'm nowhere near that $3,000 figure - mine is like $150 in the negative according to her figures (and she had actually allowed more expenses than I actually use - I've learned to live very frugally in the past year).

Also, I am actually looking for work now. I've been on disability for about a year due to a stroke last year - but my health has improved to the point that I am looking for employment now. That should increase my income once I've been able to find work. They have incentive programs in place where I can continue to draw disability for up to 9 months while working to make sure I can hold up to a regular employment schedule.

[AlmostAmos]

AlmostAmos, you might want to sign the reaffirmation, or prepare for the possibility of reposession. Virginia is part of the 4th Circuit Court (which also includes West Virginia, North Carolina, and South Carolina.)

In this W. Virgina case, it was ruled that the 'ride-through' ('retain and pay') option was eliminated, and that filing bankruptcy automatically caused the car to be in 'default'. Therefore Daimler Chrysler could repossess the car (which they did) even though payments were current and paid during bankruptcy.

http://www.bkforum.com/showpost.php?p=371732

Thanks for the link/info, I appreciate it. I told them I would like to sign the reaffirmations on both of my vehicles - we'll see how it works out.

[wonderingrov]

Just an update on my reaffirmation situation - I had mentioned earlier that I thought some of the expense figures my attorney had been using were a little high vs. what I have actually been spending. Due to advice I've seen in some posts, I have been keeping receipts on EVERYTHING for about 3 months now. I went through and calculated what I've been spending in those areas (clothing, fuel, things like that), and sure enough I've been spending less than what she had allocated. She had made copies of those receipts yesterday, and she said based on what I had submitted with the receipts showing actual expenses, that should put me in good enough shape to reaffirm if they force me into it. So, I'm good to go on that.

Guess all that panicking was for nothing.....

Keep those receipts, everyone - they may come in handy someday

[rpertusio]

We've heard nothing from Ford Credit directly. There was only a "Notice of Appearance" filed before the 341 (basically indicating that they received the BK notice and were officially acknowledging it.) Ford Credit did not show up at our 341. We're day 4 after our 341 meeting.

I'll update this thread if you're interested in the outcome.

An update: Ford contacted us 3 weeks prior to discharge and and asked us to sign a lease assumption agreement. We signed it per strong recommendation from our lawyer.

- rp

[AlmostAmos]

Ford sent a reaffirmation agreement to my attorney yesterday (same day as my 341). I'm in VA and am debating on whether to sign it or not...

[ccsjoe]

AlmostAmos,

Depending on if your car and loan is worth more than 3K, and taking into account a prior posting about the 4th Circuit, Ford will most likely repossess if you don't reaffirm. They are well known for diong this even if you are current with your payments. So the choice is really whether you want or need to keep the car. I am in the 9th and Ford will repo me if I don't reaff, my attorney won't even charge me for the reaff signature since according to him there is no negotiating with Ford.

Good luck.

[wnguyen]

wonderingrov

If your car loan is less than $5000, then usually Ford doesn't require reaffirmation. From what you said, you have less than 2 years and the monthly payment is $250, then I don't think you should be worried about reaffirmation, as you got only $3K left on your loan.