To Reaffirm a Vehicle or Not

[DesdemonaB]

Hello All

I am getting ready for my 341 meeting next week, and I am still confused about reaffirming my vehicle.

Brief history, I had a 07 Trailbrazier repo’ed in 11.2009 – used a friend of the family vehicle till 7.20100 (he needed it back) had no choice by to go to a buy here pay here lot and purchased a ’02 Grand Caravan (very low mileage) in 8.2010 made my 9.2010 payment and ½ my 10.2010 payment then filed 11.12.2010. So currently I am 2 ½ payments behind, KBB value is 5,700 owe 11,000

My Questions Are:

Is it worth it to reaffirm?

Should I try to secure a “new” loan from an on-line company like Capital One Auto Loans before the 341 and surrender the van?

Or not sign – catch up on my payments before the discharge and drive & pay in hopes they don’t repo?

Any input would help my overworked brain.

[jlynn275]

This is by far the biggest question mark in my situation as well. It's kinda sad that the decision to give up my house was way easier than giving up the car. I guess because it's so instant with the car

[tcreegan]

Hi desdemonaB,

Is it worth it to reaffirm? Short answer: No ....negative $5,300 equity = bad deal

...secure a “new” loan from an on-line company like Capital One Auto Loans before the 341 and surrender the van? ..? New loan for a different car and give van up?
Short answer: depends...can you get a better deal than you have now?
Problems: getting credit while in a BK is technically not OK; disclose BK to Cap1 Auto; disclose to trustee and amend schedules if necessary.

Or not sign – catch up on my payments before the discharge and drive & pay in hopes they don’t repo? ...best option for the short term. Call up whoever lent the money and tell them what you plan to do, ask them what they will do.

Post-BK clean-up your credit reports, do a little rebuilding, go shopping for a better deal.

Good luck w/ this, sounds like you bought locally, hopefully they will be willing to work with you!

Tom in Colo

[dumpinmydebt]

DO NOT REAFFIRM. You are so underwater, you will regret it.

Who is your car financed with? I suggest riding through. That's what we are doing. I haven't heard a peep from our car lender. We don't receive statements, but we keep paying the car on time. They haven't even sent reaffirmation papers, seems like they just don't think it's worth it either. We are with Chase.

We are going to keep this car for a few months after discharge (once we have saved up a good amount of money for a downpayment) then getting a different car and turning this one in.