Reaffirmation and Schedule I/J

[rjmwx81]

In another thread I'm involved in there was a lot of discussion about schedules I & J and qualifying for Chapter 7. I feel a bit more comfortable now that I will qualify for a chapter 7, but am worried about the reaffirmation on my car.

If I file Pro Se (which is my only realistic option), I have to have a reaffirmation hearing, at which point the judge or trustee (not sure which?) determines whether my car loan creates an "undue burden." Meantime, I have to figure expenses on my schedule J, and without the car loan my DMI is too high. So, what happens if the judge/trustee decides that reaffirmation is an undue burden? I can't surrender because A) I need a car and B) the lack of a car payment would move my DMI from Chapter 7 to Chapter 13 territory. I can't redeem because, let's face it, if I had that kind of money laying around I could just pay my creditors. How does this work? I understand that my lender MIGHT agree to a drive-through, but is there a chance they might refuse?

[ccsjoe]

I included my car payment on my J. I'm doing a reaff. If judge doesn't sign off it won't matter, still a foreseeable regualr expense.

[tcreegan]

Hi rjmwx81,

The reaff hearing for pro-se is w/ the judge. But the outcome doesn't matter much, stay current on your payments and keep up the insurance if you want to keep the car. Unless there is a BK clause in your car loan contract, the lender can't do anything b/c you are not in breach of contract. Even if your contract has a BK clause, courts have been ruling that the BK clause is not valid, a BK is not a breach of contract. Go to your courts website and search for some opinions to copy and print out if your lender makes a fuss. But 99% of the time if you stay current, auto loan outfits will say nothing.

The car expense on sched J seems legit, you have to have a car to get to work, right?

Tom in Colo

[rjmwx81]

Ok thanks for the info. I think maybe I'm just being a bit paranoid. I can't imagine why my lender wouldn't want my money...but I keep thinking of all these "what-if" situations.

[keepmine]

If, you are paying online, expect online access to be denied once you file. You'll need to speak with the lenders bk dept to get an address to mail payments.
There have been quite a few court decisions that say, a debtor has done what teh bk code requires when they offer to reaffirm. The code does not say the reaffirmation must be approved.

[tcreegan]

Hi rjmwx81,

....take a deep breath.....relax.....

Can you post who the lender is, maybe someone has direct experience with them?

keepmine has it right, caselaw is piling up, filing the BK, marking reaffirm, you are not in breach of contract, they cannot repossess.

Hang in there,

Tom in Colo