reaffirm car?

[Maine]

Ford Motor credit loan, looks like we will need to reaffirm (seems like they will take it even if we are current) Does reaffirming mean more lawyer work? Will it cost us more or is that usually included in the bk fee? Just trying to plan ahead.

Also- if the car is worth more than the loan and we reaffirm the loan do we just use our vehicle exemption to cover the equity? What if we have 7k equity and the exemption is only 5k (our wildcard is used by other stuff) would the trustee let us redeem for 2k and keep the car & it's loan?

I have so many teeny questions and feel like a pain in the arse if I call the atty to ask these piddly things.

[tcreegan]

car reaffirm

Hello Maine,

"Does reaffirming mean more lawyer work? Will it cost us more or is that usually included in the bk fee?"

Yes/Maybe not, Not usually
The reaffirmation agreement is a new contract between you and Ford Motor Credit. You can deal with FMC directly and avoid lawyer fees but be sure you have read and understand all the documents. FMC can change the terms, it may not be the same as you have now. (a good lawyer might even be able to negotiate better terms)

(assume you understand this process means the debt is NOT discharged, and can't be for at least 8yrs. It leaves you legally liable for the debt.)

"Also- if the car is worth more than the loan and we reaffirm the loan do we just use our vehicle exemption to cover the equity? What if we have 7k equity and the exemption is only 5k (our wildcard is used by other stuff) would the trustee let us redeem for 2k and keep the car & it's loan?"

Yes and Yes

"I have so many teeny questions and feel like a pain in the arse if I call the atty to ask these piddly things."

Ask away, that is the purpose of this forum!!

Tom in Colo