Chp 7: questions about reaffirm on car and house

[Lovesgirl]

Hi, husband and I will be doing chapter 7. We currently pay the house and car without any problems. The mortgage we did a loan mod thru BOA with the help of NACA. The car payment is $351 and financed thru State Farm Bank, and we have been customers of State Farm for 27 years BTW. I just tried to refi the car thru State farm bank to stretch it out another year or so and thus reduce the payment. but it wouldn't fly cause our credit is in the toilet, in the 500s cause we have been putting off filing the bk for about 2 years now. The car is worth bout $18000 retail and we owe $9400 and have 30 payments left. We do want to keep the house and the car.

Question is: when we do the chapter 7,
1.will State Farm Bank give us an "offer" to keep the car and reduce our payments if we reaffirm?
2.if we do not reaffirm it, what are the chances they will take the car even if we make the payments?
3.if we do not reaffirm and make the remaining payments, can they take it after we have paid it off if we do not reaffirm?
4. i am concerned about a creditor or bk trustee trying to make us sell the car since it has some value in it? is that something to worry about? and how do keep that from happening? (We do have another vehicle that is paid for-2000 4runner needing repairs).
5. I tried to refi it again with State Farm and was turned down due to credit rating, should I call the hardship dept and tell them we will be filing bk? will that cause them to work with me?

Any help or advice is VERY appreciated

[Pandora]

.. We currently pay the house and car without any problems.

The mortgage we did a loan mod thru BOA with the help of NACA. The car payment is $351 ... I just tried to refi the car thru State farm bank to stretch it out another year or so and thus reduce the payment.

Going to sound harsh, but its not meant to be You actually arent paying "w/out any problems" - you modded your mortgage and tried to re-fi the car to stretch it out in order to reduce the payment, and are looking to file CH. 7. Red flag waving all in front of you (gentle hugs).

Have you ran the numbers / means tests / schedules to see where you actually come in at? As for the car, if you want to keep it, you'll have to somehow exempt the equity in it else you'll have to pay to keep it. Have you looked through the forum / NOLO book? Read through and definitely read the sticky on Reaffirmation / Why its a bad idea.

[Lovesgirl]

Most of our problems are related to credit card debt. A lot of which was related to our company but that's "another" story LOL. Our atty said we way pass the means tests, but last time we did that was about 18 months ago and we have more equity in the car now. Soon we will be having to make a personal payment monthly to IRS as well so I was hoping to reduce the car payment to help me come up with the IRS payment. Somebody else suggested I get a title loan on the 4runner and then I can use the car exemption toward the newer car?

Can you direct me as to where I can find the NOLO book?

[SMinGA2]

I looked up NC exemptions and don't see a vehicle exemption. It does look like up to $3500 of the homestead exemption (if no equity in the home) can be used as a wild card. Most states allow couples to double - but discuss w/ local attorneys when you set up consults. What this means, is you can probably exempt $7,000 of equity in the vehicle if you do not have equity in your home.