Another car reaffirmation question - Lender Ally

[basketsbears]

Does anyone know if one reaffirms with Ally if they will redo the rates? We owe about $16,000 on a Jeep (not sure it's worth, but more than likely upside down), we pay $495 month and will be paid off June 2015 - rate 9.9%, has about 48,000 miles. Our new truck loan is also with Ally, have 73 months left - payment $574, owe $33,087 rate 7.3%, has 3,700 miles (not the smartest move we have made).

We are leaning on not reaffirming at all, and just keep paying on both, or just one or none! Ha! We have gone around and around on our vehicles, but do not want to have to worry about reliable transportation. We have talked about stopping payment on both in June when we file, but we need the payments to reduce disposal income. If we stopped paying we would probably just buy a beater until we could get better rates. We have never been late on any of our car payments.

If we just kept paying on one vehicle with Ally, will they take both if we turn one in???

Thanks for any responses. We are just trying not to keep repeating bad mistakes.

[HHM]

They shouldn't take both if you stop paying on only one. Although it is possible, most lenders don't redo the terms. Don't reaffirm and see what happens.

[basketsbears]

Thank you. We do not plan to reaffirm either vehicle. Even though we are making the payments, etc, we just are not sure after re-evaluating everything financially if we need to be spending all this $ on vehicles every month. My husband just wants to wait and see how things go after the BK is filed and just go from there.

Thanks for your help!

[malf1204]

I have one vehicle through Ally. They have a written policy that allows you to keep your vehicle after a chapter 7 discharge as long as you make the payments on time. I receive an "information" invoice each month and it is printed right on the invoice "You may retain your vehicle as long as you make your payments. If you fail to make your payment on time your vehicle may be repossessed." I would call them and ask them. I suspect you can return one and continue to pay on the other.

[basketsbears]

Thanks for the information!

[malf1204]

I do not know where you are located but I am in Maryland and the BK Judge in my District will issue a Chimm order if requested at a reaffirmation hearing. I went to the hearing and asked him to deny my reaffirmation agreement and he issued a Chimm order that prevented Ally from repossessing my car as long as I made the payments and maintained valid insurance. That would solve your problem.

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
In Re: *
XXXXX
* Case No. 11-XXXXXX
* Chapter 7
*
*
Debtor(s) *
ORDER DECLINING APPROVAL OF REAFFIRMATION AGREEMENT
This bankruptcy case under Chapter 7 came before the court for approval of the
Debtor's proposed Reaffirmation Agreement with Ally Financial, f/k/a GMAC. The
court held a hearing on June 30, 2011. As a result of the matters developed at the
hearing and from the Schedules, the court finds as a fact that the presumption of 11
U.S.C. § 524(m) that this debt is an undue hardship has not been rebutted to the
satisfaction of this court. However, as in the case of In re Chim, 381 B.R. 191 (BC MD
2008), the Debtor has performed his duty under 11 U.S.C. § 521(a)(6) in that he timely
filed a Statement of Intention and timely entered into the Reaffirmation Agreement.
The Debtor is not required to surrender the U09 SMRTFORTTWO to the Creditor, and
as pointed out in In re Chim and In re Belanger, 962 F.2d 345, 348 (CA4 1992), the
default-on-filing clause in the installment loan contract is unenforceable as a matter of
law.
The court declines to approve the Reaffirmation Agreement. The provisions of
11 U.S.C. §§ 362(h), 521(a)(6) and 521(d) are inapplicable to this case. The vehicle
remains property of the estate, the automatic stay remains in place with respect to the
vehicle until such time as the stay terminates under 11 U.S.C. § 362(c) or (d), the
Debtor is not obligated to turn over possession of the vehicle to the Lender, and the
Lender may not exercise remedies as a result of default and any ipso facto clause
contained in the loan agreement.
IT IS SO ORDERED.

[basketsbears]

Oh OK - I will check into that. I know we will not be reaffirming anything. We are in Indiana.

I am not sure of any of the laws in Indiana regarding this, but will check with attorney when we get closer to file.

[Hause]

Malf, does your ally loan after chapter 7 report IIB, or it's reporting normally without marks?

[stumpy579]

In my bk which was discharged in dec. 2005 there is a document which is titled chapter 7 debtors statement of intention. it says property to be surrendered; none
property to be retained 1. my address,countrywide home loans*retain. 2. 2000 toyota rav4 credit union name*retain. these 2 entries are hand written on the document and i signed it.
does this mean i have reaffirmed my mortgage? the auto has long since been paid off and gone. i just checked my credit report on transunion and it shows my mortgage with the current balance
being reported as paid on time every month back to 2006 by boa.(boa bought countrywide at sone point after my bk). I thought i did not reaffirm and do not see anything with the word reaffirm
in my bk paperwork(pacer) but why would they be reporting it and showing the balance owed? I am going to refi this mortgage as it is soon going to be my only debt and the rate is too high.
I may also walk away if i can't refi or if the repairs needed are too high. My credit score is over 700 now and i might buy a another house and walk but that balance showing on my credit report
will make it impossible to get another mortgage. i am confused as to whether or not i reaffirmed. i can protest this and transunion will investigate but i nay take a hit to my credit score?
what is the best way to be sure if reaffirmed or not? it was more than 7 years ago and in pennsylvania.

[keepmine]

In my bk which was discharged in dec. 2005 there is a document which is titled chapter 7 debtors statement of intention. it says property to be surrendered; none
property to be retained 1. my address,countrywide home loans*retain. 2. 2000 toyota rav4 credit union name*retain. these 2 entries are hand written on the document and i signed it.
does this mean i have reaffirmed my mortgage? the auto has long since been paid off and gone. i just checked my credit report on transunion and it shows my mortgage with the current balance
being reported as paid on time every month back to 2006 by boa.(boa bought countrywide at sone point after my bk). I thought i did not reaffirm and do not see anything with the word reaffirm
in my bk paperwork(pacer) but why would they be reporting it and showing the balance owed? I am going to refi this mortgage as it is soon going to be my only debt and the rate is too high.
I may also walk away if i can't refi or if the repairs needed are too high. My credit score is over 700 now and i might buy a another house and walk but that balance showing on my credit report
will make it impossible to get another mortgage. i am confused as to whether or not i reaffirmed. i can protest this and transunion will investigate but i nay take a hit to my credit score?
what is the best way to be sure if reaffirmed or not? it was more than 7 years ago and in pennsylvania.

A statement of intention is just that-your intention at the time. To truely reaffirm, you must sign a reaffirmation agreement and it must be filed with the court.
Either contact your lawyer and ask what happened or, register for a pacer account and pull up your case and see if a reaffirmation was fied.

[stumpy579]

i looked in pacer and i don't see any reaffirmation agreement. I also looked at all the papers i was given by my lawyer and there is no reaffirmation agreement. I don't know why boa is reporting my mortgage on my credit report as if it had never been discharged in bk? I have continued to pay on time every month since i have had this mortgage in 1999 both before and after bk. I always liked the option of being able to walk away even now 7 years after bk and making steady payments walking may be my best option due many repairs needed on the house,the remaining balance,interest rate and poor housing market. I would like to look at purchasing another house and after i move stop making payment on the current house. If boa was reporting properly my credit report would show i have no debt at all. The way they are reporting it looks like i still have a mortgage but the good payment history helps my credit score.i will chalange boa's innaccurate reporting of my mortgage if it is in my best interest. I have heard alot of bad things about boa and they may try to screw my credit up in the worst possible way especially if they think i am planning on walking. Is it possible they don't know my mortgage was discharged in bk since they bought out my lender after my bk was final? I quess i will dispute the boa mortgage on my credit report but i want be sure that is best thing to do.

[runner4life]

Pay-as-you go is always the best option. Reaffirmation agreements are scare tactics. Just keep paying and 99.9% of the time no one will take your vehicle.

[basketsbears]

I talked with Ally, they most likely will not repossess if payments are current, and that's what we have done.