Car, not reaffirming, how long do I have?

[Richie00]

I just had my 341 meeting. It is my plan to not reaffirm my car and to get something else after discharge with a lower payment. My question is this... If I stop paying today, my guess is that they would need to file a motion to lift stay in order to repo the car correct? Does it make sense to keep paying until I am closer to discharge and then stop paying so that they dont take the car too soon since I need it now or can I stop now and by the time they file everything it will be close to discharge? I know there are no guarentees but I dont have a lot of money right now and could really use the extra money to pay for heating oil or living expenses. I asked my lawyer how long I would have and she really didnt know. If all goes well I should have a discharge at the end of Novemeber.

[jetsfan2010]

who is your auto loan with?

[AngelinaCatHub]

I just had my 341 meeting. It is my plan to not reaffirm my car and to get something else after discharge with a lower payment. My question is this... If I stop paying today, my guess is that they would need to file a motion to lift stay in order to repo the car correct? Does it make sense to keep paying until I am closer to discharge and then stop paying so that they dont take the car too soon since I need it now or can I stop now and by the time they file everything it will be close to discharge? I know there are no guarentees but I dont have a lot of money right now and could really use the extra money to pay for heating oil or living expenses. I asked my lawyer how long I would have and she really didnt know. If all goes well I should have a discharge at the end of Novemeber.

Discharged the END OF NOVEMBER??? What year? This is October, it takes three missed payments before they even notice. You have plenty of time. Save the one month payment. 'Hub

[Richie00]

I am actually with a credit union in our area. We initally put down that we wanted to reaffirm but they havent sent any paper work yet. We have both of our cars with the same credit union. We plan to keep one but let the other go since its so underwater. I keep trying to figure out if I should just chance it and have the extra money that I really need. My stepfather sells cars and has told me that he can get me something else as soon as I am discharged. I am just trying not to make a hasty decision and end up getting the car taken too soon and having to pay for a rental that will end up costing more.

[drowning123]

You have about 4 months.

[malf1204]

they either have to file a motion to lift the stay and if you file a response there has to be a hearing which will take a few months after and if they file.. My lender chose to wait until discharge and they showed up 3 days later and took the car. They are required to send you a notice of default by certified mail in Maryland and give you a date usually 15 days to pay off the loan before they come and get it. So you will have at least 15 days notice in my case I had 30. If they do not send the notice by certified mail they are in violation of state law.

[Jaspell]

I would estimate you can miss 3 months of payments before they repo. You would be eligible for a car loan the day after your discharge. Maybe sooner if you go to one of the buy here pay here places. Obviously because you are not reaffirming, you will have no obligation on the car loan. Good plan!

[ValleYum]

I am actually with a credit union in our area. We initally put down that we wanted to reaffirm but they havent sent any paper work yet. We have both of our cars with the same credit union. We plan to keep one but let the other go since its so underwater. I keep trying to figure out if I should just chance it and have the extra money that I really need. My stepfather sells cars and has told me that he can get me something else as soon as I am discharged. I am just trying not to make a hasty decision and end up getting the car taken too soon and having to pay for a rental that will end up costing more.

Before you skip a payment call your attorney! You may have to give up both cars if your loans are cross-collaterized. Many times credit unions 'intertwine their loans' via cross-collaterization so it typically is an all or nothing proposition with them. A good explanation of this can be found here: http://www.flumelaw.com/cross-collateral.asp

Do you have any other debt (like a credit card) with this same credit union?

Make sure to ask your lawyer about cross-collaterization and his experiences (if any) with your particular CU and with debtors trying to keep 1 out of 2 cars. Also you could ask him about a filing a Motion to Redeem on the underwater loan using a 722 redemption loan.