Re-affirmations???

[birdo]

I have been reading a bunch of posts and got to wondering if you filed re-affirmations with the court signed and agreed upon by you and the creditor... IE your mortgage, do you have to go back to court for this? They were filed with the court
by the deadline. Does discharge happen as scheduled?

[tcreegan]

Hi birdo,

Yup, you go back to court for a reaffirmation hearing where the judge will approve or deny the reaff.

The hearing should delay the discharge since you can't reaffirm after the discharge.

Your attorney can sign-off on the reaffirmation, but they usually don't.

And don't be too disappointed if the judge denies it, they usually do deny it.

Reason being they have to do what is "in the best interest of the debtor" and reaffirming rarely is....

Tom in Colo

[birdo]

My attorney did sign off on it and it was filed he never said anything about going back to court.
He said that was the last thing then discharge. My attorney is really on top of it so Im thinking
He would have mentioned it.????? I will have to find out. Thanks for the info! :0)

[debee]

My understanding is that you don't always have to have a hearing. If your lawyer signed off on it and indicated that it was not "undue hardship", no hearing required. If the lender was a credit union, the undue hardship doesn't even matter. Those get entered regardless (so long as the debtor was represented).

[dneil]

May I ask why you want to re-affirm the debt? Everything, and I mean "EVERYTHING" I have read specifically says that re-affirming a debt is counter productive..... do you understand what a re-affirmation agreement does and what leverage the bank has over you, once again??

[nekom]

I wouldn't say that reaffirming is ALWAYS a bad idea. You have to understand exactly what you are doing, and if you don't, you need to have your attorney explain it to you, that's for sure. It IS a big decision not to be taken lightly.

I reaffirmed my car loan. Here's my rationale: 1. I do need a car. I have a truck but it's a beater, very poor mileage and no way to cart the little one around. 2. It's got plenty of warranty left on it and it's a nice car, and I can easily afford the payments. 3. Now I don't have to worry about acquiring another vehicle which would have to be a cash purchase or financing on what I can only assume are godawful terms, if at all even possible. and 4. I don't know how credit reporting is going to work (new tradeline? old one no longer IIB? anyone know this?) but I'm hoping in some way its a positive tradeline right off the bat to get that rebuilding jump started.

Maybe it's wise, maybe it isn't but it keeps me in an affordable car and if it's financially a mistake it isn't going to be a huge one.

As for how that works, my attorney handed me the reaff agreement sent to them by the creditor, and he did not mention ever having to go to any hearing about that or following up on it in any way other than of course keeping payments current.

[frogger]

The majority of the time, reaffirmation is not a good thing, however there are exceptions to this. I know for me, there was one item in my bk estate that was reaffirmed. Sure, it got me $5k in debt, but is was an $18k asset that I could have turned at any time and made money. There was never an extra hearing on it, just paperwork done by mail between myself, my attorney, the lender, and the trustee. No big deal.

Never say never....

[dneil]

This was in reference to a mortgage... that is what I was referring to since she was talking about re-affirming a mortgage. Sorry I wasn't clear on that.

[birdo]

Thanks all for your help and input....in our situation the coversation never came up about not reaffirming.
It was handled as if this is what you do. I did not see any info about reaffirming " risk" until it was already done
I am going to trudge forward boldly and and turn the page to optimistically and prayerfully start a new chapter!
:0) we have been our house a Long time I just asumed that was what you were supposed to do....

[birdo]

Hooray!!!! Just received our discharge!!!