Reaffirm auto loan?

[sleeper]

My attorney has told me that as long as a continue paying for my auto loan in a timely manner (using autopay through my checking for example because since i have filed my auto lender can no longer send me invoices) that they will not repo my car and there is no need to reaffirm the loan, just pay and it will be ok. I am kinda nervous of this idea and i do want to keep my car but will this work? has anyone else been told or done this?

[ccsjoe]

Yes, this is quite common, unless your lender is one of the more aggressive ones that demands reaffirmation agreements on certain value loans, such as Ford Motor Credit.

[sleeper]

I have chrysler financial.

[ccsjoe]

Never heard of them demanding a reaff. I would trust your attorney in this case.

[dumpinmydebt]

We are doing this as well. I would trust your attorney's advice. It is in your best interest to not reaffirm if you are underwater on the loan or it has an undesirably high interest rate or payment. We are going to keep paying on it and a few months after the bk is discharged, we plan on surrendering it and getting a different car to help rebuild our credit.

Our lender hasn't even sent us reaffirmation papers and they have had the statement of intention for a few weeks.

[debee]

sleeper, can you just call them and ask them about their policy?

I was reading an article by a San Jose law firm about reaffirmations and in that article they say in their experience Chrysler and Ford are the two who will repo without reaffirmation.

Not sure if the link will paste but this is my attempt (so you can read the article if you want):

http://www.brooksattorney.com/Bankruptcy%20Relief%20Center/Auto%20Loan%20Reaffirmation%20Agreements/Auto%20Loan%20Reaffirmation%20Agreements.html

edit: scroll to the bottom the page to get to the relevant part of the article.

[sleeper]

We are doing this as well. I would trust your attorney's advice. It is in your best interest to not reaffirm if you are underwater on the loan or it has an undesirably high interest rate or payment. We are going to keep paying on it and a few months after the bk is discharged, we plan on surrendering it and getting a different car to help rebuild our credit.

looking at debee's link i don't think i should trust my lawyer's advice.
The reason i want to reaffirn is i am not underwater I am actually a little ahead! and my interest rate is way better than i would be able to get now after BK! I understand if i was under there would be no reason to keep but i really am not underwater.

[sleeper]

sleeper, can you just call them and ask them about their policy?

I was reading an article by a San Jose law firm about reaffirmations and in that article they say in their experience Chrysler and Ford are the two who will repo without reaffirmation.

Not sure if the link will paste but this is my attempt (so you can read the article if you want):

edit: scroll to the bottom the page to get to the relevant part of the article.

Damn Chrysler financial sucks, thanks for the link i wish i had a loan elsewhere now though!

[dumpinmydebt]

Well i definitely agree if Chrysler is one of those jerks (and based on the extra information you provided) then it may be best to reaffirm.

[joh]

Don't beleive everything on the internet. call Chrysler and ask or have the lawyer call them.

[wnguyen]

I would trust your lawyer and not reaffirm (any smart and good lawyer would advice his/her clients to not reaffirm) unless your lender makes it clear that they will repo if you don't reaffirm, regardless of your payment status. Ford is notorious for doing this and Chrysler probably is too. It's best to call them or have your lawyer call them and find out.

[greg2169]

on the bankruptcy forms i checked that i would be reaffirming the auto... are you guys telling me i dont have to send this reaffirmation agreement back to wells fargo? its basically the same exact payments im making i got them to lower the interest 1% tho

[debee]

Links to people with personal experience with Chrysler & reaffirmation:

http://www.bkforum.com/showthread.php?43712-Chrysler-Reaffirmation

http://www.bkforum.com/showthread.php?52126-keeping-car-and-not-reaffirming

[debee]

I just went to Chrysler Financial's website looking for info (none there) but there is a number (1-800-556-8172) so I called and asked them and the guy I spoke to said they do require reaffirmation agreements & they have a bankruptcy dept. I don't know if the guy was right. Maybe I got the office dummy on the phone. But that's what he told me.

[debee]

on the bankruptcy forms i checked that i would be reaffirming the auto... are you guys telling me i dont have to send this reaffirmation agreement back to wells fargo? its basically the same exact payments im making i got them to lower the interest 1% tho

It depends on the lender. Credit unions usually require reaffirmations as does Ford (for vehicles around 5k and up) and possibly, maybe probably, Chrysler. If you don't reaffirm, they can repo 45 days post-341. But most people are finding that they can state they intend to reaffirm and then never actually sign the agreement.