Reaffrimation agreement questions

[rooster0330]

We filed chapter 7 and have already had our 341. Our lease company for one of our cars sent a reaffirmation agreement which we signed and sent back (they sent it to our attorney) before the 341.

The loan company for our other car hasn't sent any reaffirmation agreement.

We received a letter from our attorney yesterday saying we need to call the loan company to get the agreement. Is this standard practice, also the "loan" is paid off the only thing that is outstanding is late charges, so would we still need to reaffirm the debt being that its only late charges not the original loan. Thanks for any insight.

[ValleYum]

If you have paid the principal of the car - won't your Ch 7 get rid of the late fees? Is your attorney worried you won't receive the title to the car if you don't reaffirm?

Maybe some other folks will chime in, but I would say if it were me, I would be inclined not to pay.

If they did not release the title to you once you received your discharge, could they could possibly be in violation of the permanent injunction by holding your title 'hostage' unless/until you paid the late fees??

My 2 cents worth - but I really wonder why your attorney is pushing you to reaffirm for late fees?

[rooster0330]

we do owe a penny on the orignal loan, yes a penny! would that make a difference!

[ValleYum]

LMAO... You know, I honestly don't think so but I am not a lawyer.

Did you point blank ask your attorney what his thought process was on having you reaffirm for one cent in principal and the rest late fees?

:::I am still giggling out loud over the penny::: Hopefully someone smarter than me will come along and weigh in...

[LadyInTheRed]

If the late fees were pre-petition late fees, they are still secured by the title. I wouldn't reafirm the loan. Just send the lender whatever you owe them, a penny plus the pre-petition late fees.

[SMinGA2]

I would not reaffirm either. If you have a balance due after the final payment - from late fees and interest due to being late from time to time - some lenders will report it as 'late' until its paid in full. You don't want that after a ch. 7. If you reaffirm - they could do that. Not to mention that since you're technically behind, once discharge hits they could repossess.

How much do you owe still? I think this should be a priority to get paid as soon as possible.

With subprime/high rate loans - this can happen. Interest is usually calculated daily, so say you always pay on the last day of the grace period: you'll owe a good bit of accrued interest when the 'last' scheduled payment is made. Pay early, pay extra. A few dollars here, a few days there - can add up.