Is this going to be a problem?

[my2girls]

Hi All,

We are about 13 days from day 60. We recently signed our reaffirmation on our vehicle. Today our atty called us to be "reminded" what our intent was regarding the vehicle. We definately need to keep it, our other vehicle has almost 100K miles on it. He stated since we filed in the red about 1200 monthly expenses (we were over the median) he would need to put down an explanation of how were going to be able to afford the vehicle. Shortly after we filed I was able to move from a partime position to a fulltime position. So it's an obvious explaination. My worry is are they going to question my recent increase in income? All documentation was provided with a 6 month look back not moving forward right? I'm sure I read this before I am just parnoid they are going to tell us we will not qualify for the 7 based on my new job and increase in income.

[BobMango]

Yes, the BK filing is based on your situation at the time you filed. Since your situation has changed since your 341 I think you have a reasonable explaination. As long as you can support the payment with your new income that should be enough. When we originally filed we had a negative DMI of about $200, but wanted to reaffirm a vehicle payment of $400 (negotiated down from $635 with our credit union) so we had to modify our schedules to show enough DMI to cover the car payment. Once we did that our lawyer agreed to sign the reaffirmation and we did not need to see the judge. Our situation simply involved adjusting expenses to get the numbers right, no questions from the trustee.

If your new income will allow you to do the same you should have no problem.

[ValleYum]

That was a great answer, Bob!!!

Our lawyer wrote "Debtors plan to reduce expenses, increase income if possible and family members are willing to assist if necessary to make the car payment". He felt comfy signing it with that verbiage and we did not have to see the judge either.

[my2girls]

Thanks. My income actually went up between filing and the 341 hope that doesn't make a difference. It's been a blessing to have the extra hours I just hope it doesn't affect the outcome of our bk.

[OhioFiler]

Is reaffirmation necessary? Can't you do a ride-thru on the car loan?

[BobMango]

Is reaffirmation necessary? Can't you do a ride-thru on the car loan?

This is a good point, unless your lender is making some sort of concession it's generally in your interest to not reaffirm. I did because they allowed me to skip one late payment and dropped my payment from $635 to $400, but only if I signed the reaffirmation. Plus I had significant equity in the vehicle that I didn't really want to risk.

[Logan]

I didn't reaffirm my car even though I planned on keeping it forever. Guess what, 6 months later I walked away from it very happy I did not reaffirm.

[ValleYum]

I had to reaffirm - my '06 Camry SE only had 17,000 miles on it when we filed. We had ~ 8k equity in it and they told me that hubby could keep his crappy Chevy Colorado but they would come get the Camry if we did not reaffirm it. We only owe a few grand on it now and it is worth about 16k on KBB. I just rolled 21,000 miles the other day.

It did help my credit scores to reaffirm since they resumed reporting it.

[my2girls]

Our atty recommened it. He said no guarantees with a repo if we didn't. Didn't want to take a risk not having transportation for work and kids. Keeping my fingers crossed. It was listed on pacer today. 11 days til day 60! Would be a great Christmas present to put this behind us and start anew. It already feels good shopping on a budget, I've become so much more concious of what I buy, how I spend. Looking forward to a fresh future.

[OhioFiler]

There are no guarantees against a repo if you reaffirm either. What happens if you lose a source of income? You won't be able to walk away from that debt but you'll lose the car. Some attorneys are foolish.