Statement of Intention

[PuggoWuggo]

Question
If I want to keep paying on a car but not reaffirm with the tote the note
car lot what do I check off on the statement of intention?
I have to obviously list the lienholder as a creditor but I am just stumped as to what to check off.
I know i'll check off retain property, but then what?

Thanks in advance

[Heli]

On my docs it's checked Retained and then the Other box is checked as well and put Retain and pay pursuant to contract. Then of course the box to claim exempt or non-exempt for the property in question.

[wonderingrov]

On mine, my lawyer marked "other' for both my home and auto, then entered "retain and pay." It worked fine for me - neither is going to force me to reaffirm.

[ccsjoe]

Unless your loan is with Ford Motor Credit, odds are you would be ok with retain & pay. FMC actually demands a reaff, otherwise they will repo even you are current on payments just because your bk filing constitutes a breach of their contract with you. I got this info both from multiple posts about FMC and from the two atorneys I consulted with (which I still have to decide whether to go pro se or retain one of them).

[wonderingrov]

Unless your loan is with Ford Motor Credit, odds are you would be ok with retain & pay. FMC actually demands a reaff, otherwise they will repo even you are current on payments just because your bk filing constitutes a breach of their contract with you. I got this info both from multiple posts about FMC and from the two atorneys I consulted with (which I still have to decide whether to go pro se or retain one of them).

One caveat on that - my auto loan is with Ford Motor Credit, and I thought I was going to have to reaffirm with them when I filed (even Ford Motor Credit had told me that before I filed). Well, 30 days into bankruptcy, my attorney had never had received the reaffirmation agreement from them. I called their bankruptcy department to see if there was a problem, and they said that they don't do reaffirmations on balances under $5,000 (mine had just dropped below the $5,000 threshold). I asked if this meant that it would be a 'retain and pay' type situation, and the representative confirmed it. As long as my payments are on time, and I maintain full coverage on insurance, I can keep it.

[ccsjoe]

Awesome point, I did not know that nor was it reflected in any of the references I found. Hopefully it will apply in some people's situations, such as yours. It does not for me :-(, brand new 2010 model purchased in February with a 29K balance on loan.

[PuggoWuggo]

Got it. Thanks so much!! That was simple

[tcreegan]

checking reaff does not reaffirm

Hello all,

FYI, checking reaffirm on the statement of intentions does NOT mean you have reaffirmed. To actually reaffirm you need to sign a new contract with the creditor.

In some jurisdictions (S. Car. Georgia, Mass, others?) checking reaffirm and then not reaffirming gives you some legal protection if you stay current on the loan even though you are not legally liable for the debt.

Odd that someone used "retain and pay".....that was eliminated with the new bk laws.

Just some thoughts,

Tom in Colo

[wnguyen]

My lawyer did all that for me. She just checked the box "retained" and "reaffirm". My question here is what if I don't sign the reaffirmation, what's gonna happen next?

[tcreegan]

retain and reaffirm

Hi wynguyn, if you don't sign reaffirmation papers with the lender, there are three likely scenarios:

1. You stay current on payments. Lender may change how you make payments (no more auto pay, send payments to a "BK" dept., no change at all, etc. Nothing major, it just puts them in the clear for not asking for the money in violation of the automatic stay.) but basically nothing changes. Keep car, keep making payments like before, but you are not legally liable for the debt.

2. You stay current on payments, they come and repo your car anyhow. They take the car, you no longer owe them $$ Some lenders are known for doing this aggressively (FMC on loans over 5K) and other lenders rarely do the repo as long as payments are rolling in.

3. You stay current on payments, they come to repo your car and you inform them that it is against state law to repossess if you are current on your payments (and have insurance, of course) This law is clearly spelled out in Mass. and a lawyer from S. Car. claims that if you checked reaffirm on the statement of intention, or asked for reaff. paperwork from the lender but never sent it in, they cannot come after your car as long as you keep the payments current. Best to have something written in legalese to show the repo guy. Give him a copy to take back instead of your car.

Kinda ran on at the mouth there......sorry

Tom in Colo

[Fallonedward]

Does anyone know if Chase Auto Finance does a retain and pay?

If after I file will I have to manually send in payments or will I have electronic access to pay?

I want to be sure that Chase will not repo my used 2007 new car that I purchased this year. I just put one new tire on the car and it looks like I will need to put a 2nd on. I'm hesitant to do this if I have a chance the car will be taken from me.

so much to worry about my ulcer is in over drive

[PuggoWuggo]

Ok. We filed last Thursday. So now do I contact the lender and let them know of our intentions to keep the car and just keep paying per the contract? Will they get a copy of the statement of intention?
Thanks you guys have been a great help.

[tcreegan]

no contact might be best

My gut reaction would be to not contact them at all, just keep the payments rolling in. They will get a notice of the bankruptcy, and if they are all about reaffirmations I suspect they will contact you...

Just a gut feeling,

Tom in Colo