Reafirming house and car

[Drazil65]

All debts must be included, both our cars were current, never been late and we just continued to pay like normal (carmax and BOA neither of them shut off our access). To the OP, please be informed and absolutely do not "leave it to your attorney" for whatever reason. This is a very critical and life changing decision period. Not to be entered into without knowing everything you can possibly know and research. You must make decisions that only you can make based on your situation and the facts in your life, you owe it to yourself to be informed.

Please read everything you can about reaffirming BEFORE your pull that trigger. You can still stay and pay in your house and you can do the same for your car, the banks will gladly take your payments. You do not have any idea how the future will play out or if you will once again be in a situation at some point and cannot pay your mortgage, why would you take that debt on again. If you are filing then put yourself in the best position possible as the damage is done once you file, you are already there, you filed bankruptcy. You are a bankruptcy filer and the banks are not going to treat you any better the next time you get into trouble because you reaffirmed, actually the banks will love you upfront for taking all that debt and signing for it once again but then its business as usual and you are stuck.

Things happen, jobs come and go, medical issues happen or whatever got you here to begin with. Please reconsider until you at least do your homework and YOU make that decision. The best of luck to you.

[ksgirl38]

You were either given incorrect information or you misunderstood. All of your debts must be included in your bankruptcy, regardless of who the creditor is. If you owe them money, they get listed on your petition, receive notice of your BK and the debt is discharged unless you reaffirm or there is some exception to discharge (not likely for a car loan). The lender will still have a lien on the car if the debt is discharged, but you can usually keep paying without fear that the lender will repossess the car.

My car falls under an exemption in Kansas. I very distinctly remember one attorney telling me I didn't have to include it and the last guy I saw didn't seem concerned about it either.

[ksgirl38]

If the party that is blocking your online access is the lien-holder for your car note, you may have to reaffirm the car note to get the online access back. If that is the case, and you decide not to reaffirm, then your bank's bill pay is a good way to go. Just be sure that your checking account and the car loan are not both at the same institution.

They aren't. I have a 0% interest loan so I wasn't wanting to reaffirm so that they couldn't have an opportunity to change that.

[ohiogal]

Interestingly, I reaffirmed my car when I filed and the bank LOWERED my interest rate from 13% to 8%. Knocked $130 off the monthly payment. I was happy. :-) Especially since the bank was Wells Fargo, and they're generally pretty nasty to BKers...

[LadyInTheRed]

My car falls under an exemption in Kansas. I very distinctly remember one attorney telling me I didn't have to include it and the last guy I saw didn't seem concerned about it either.

You are confusing two different issues. Exemptions have to do with whether the trustee can take an asset and liquidate it to pay your unsecured creditors. If you can exempt your equity in the car, the trustee can't take it. But, regardless of exemptions, the loan on the car must still be included as a debt in your bankruptcy. Not that it is anything to be concerned about, as long as the loan and the car are listed and your equity in the car exempted on the proper schedules of your BK petition.

[AngelinaCat]

My car falls under an exemption in Kansas. I very distinctly remember one attorney telling me I didn't have to include it and the last guy I saw didn't seem concerned about it either.

That may be so. However, we were told that we had to list everything, including the 2004 VW Jetta, that we still owed money for; my 1993 Pontiac GrandAmSE (free and clear-value perhaps $300.); and the 1968 Chevy Impala, that had been sitting on blocks for four years. Our $1,000.00 exemption allowed for vehicles in Florida, covered my GrandAm, and the Chevy. But we still had to list them.

At the 341, the trustee asked about the Chevy: "On a scale from 'Show Room Quality' to 'housing squirrels', which is it?" I answered truthfully that it was a bit better than 'housing squirrels', but that it had been on blocks in the garage for more than four years, and the green color was mold, not paint."

The trustee formally 'Abandoned Interest' in the vehicles as being "fully encumbered"--the mortgage on the Jetta; "wholly exempt"--both the GrandAm and Chevy; and "too old to be worth anything"--both the GrandAm and Chevy.

My point here is that you must list the vehicle in the proper spot in your paperwork along with the appropriate exemption, and let the BK process work. If you don't, you and your attorney are not being honest (worst case), or slipshod (best case).

I know you won't like this answer, but 'Hub and I suffered through many of our own inept attorney' mistakes/bad advice, and ended up paying about triple what we should have, had we been better prepared. We stay here and attempt to help new filers, such as yourself, to not make the mistakes we did.

I really hope the best for you.

[ksgirl38]

That may be so. However, we were told that we had to list everything, including the 2004 VW Jetta, that we still owed money for; my 1993 Pontiac GrandAmSE (free and clear-value perhaps $300.); and the 1968 Chevy Impala, that had been sitting on blocks for four years. Our $1,000.00 exemption allowed for vehicles in Florida, covered my GrandAm, and the Chevy. But we still had to list them.

At the 341, the trustee asked about the Chevy: "On a scale from 'Show Room Quality' to 'housing squirrels', which is it?" I answered truthfully that it was a bit better than 'housing squirrels', but that it had been on blocks in the garage for more than four years, and the green color was mold, not paint."

The trustee formally 'Abandoned Interest' in the vehicles as being "fully encumbered"--the mortgage on the Jetta; "wholly exempt"--both the GrandAm and Chevy; and "too old to be worth anything"--both the GrandAm and Chevy.

My point here is that you must list the vehicle in the proper spot in your paperwork along with the appropriate exemption, and let the BK process work. If you don't, you and your attorney are not being honest (worst case), or slipshod (best case).

I know you won't like this answer, but 'Hub and I suffered through many of our own inept attorney' mistakes/bad advice, and ended up paying about triple what we should have, had we been better prepared. We stay here and attempt to help new filers, such as yourself, to not make the mistakes we did.

I really hope the best for you.

I'm just asking because maybe it's different in Kansas. I haven't found a lot of accurate info on this website so far. Just wondering if there's any way around reaffirming it.

[AngelinaCat]

I'm just asking because maybe it's different in Kansas. I haven't found a lot of accurate info on this website so far. Just wondering if there's any way around reaffirming it.

"You HAVEN'T found a lot of accurate info on this website so far"--excuse me?

You have 91 posts to date, and many other members--with hundreds more posts, including myself--have been telling you essentially the same information, and it's not accurate?

Yes, maybe it is different in Kansas, but Dorothy, you aren't in Kansas anymore. The BK code is Federal Law, and applies nationwide. The State laws regarding exemptions and such rule in the States, and the 'Rules of the Local Court' also rule in your district, but essentially the Federal Law applies.

You are free to accept or ignore the advice given here--which is given learned from the School of Hard Knocks, and honest concern for a potential filer's well-being.

[ksgirl38]

"You HAVEN'T found a lot of accurate info on this website so far"--excuse me?

You have 91 posts to date, and many other members--with hundreds more posts, including myself--have been telling you essentially the same information, and it's not accurate?

Yes, maybe it is different in Kansas, but Dorothy, you aren't in Kansas anymore. The BK code is Federal Law, and applies nationwide. The State laws regarding exemptions and such rule in the States, and the 'Rules of the Local Court' also rule in your district, but essentially the Federal Law applies.

You are free to accept or ignore the advice given here--which is given learned from the School of Hard Knocks, and honest concern for a potential filer's well-being.

I'm just saying that each time I've asked an attorney about something I've seen here I'm getting a different answer.

[LadyInTheRed]

I'm just saying that each time I've asked an attorney about something I've seen here I'm getting a different answer.

That doesn't mean the information here is inaccurate. As AC points out, when you get the same answer from several long time members of this board and nobody posts to disagree, you are probably getting good information. But, you can take it or leave it.

Let's let this thread go back to it's original topic. If you want more input on your question, please start a new thread.

[anderson238]

house-NO Reaffirm, Car- reaffirm if you know 100% that you can make this payment to complete the loan terms
I am currently in my 60 days waiting for discharge, I contiuned to pay my car note through my bank's bill pay using the same account# provided, I am not gettting statments, but know the due date and amount and click send every month.
i was also concerned, but called the bank and payments are posting.

[livingdream]

; ) No, AngelinaCat, I don't live in that particular town. So, I guess I need to understand the reasoning behind everyone telling me NOT to reafirm. We have a house payment that is similar to a rent payment we would have to make if we didn't live here. With filing bk we wouldn't be buying another house for some time. The car payment is low, with a 1.9% interest. With all the credit card debt erased, I should comfortably be able to make both of those payments. I am in nursing and as of yet, have never had difficulty working. The problem here is that as nurses, we are terribly underpaid in northern Florida in comparison to every other state in the US.
So by not reafirming, we would have to give up the house and the car, isn't that correct? What would be an advantage to that?
I really appreciate everyone's input and have read through multiple posts. So, I really am listening. Maybe just not understanding?

[df04527]

You just keep making the payments as you normally would. They will not reposses or foreclose as long as your paying...hence the pay and stay phrase. It IS the best of both worlds and i can't agree more DO NOT REAFFIRM.

If something happens down the road, like life, you CAN stop making payments and walk away free of the debt.

[NoMoreCards]

Nobody is saying to give up your house or car. If you keep paying, nothing changes. If you ever do not pay, they foreclose. The only real difference is if you ever stop paying and get foreclosed on, they cant come after you for the debt. Learn more, you clearly are not inderstanding your options.

[keepsmiling]

; ) No, AngelinaCat, I don't live in that particular town. So, I guess I need to understand the reasoning behind everyone telling me NOT to reafirm. We have a house payment that is similar to a rent payment we would have to make if we didn't live here. With filing bk we wouldn't be buying another house for some time. The car payment is low, with a 1.9% interest. With all the credit card debt erased, I should comfortably be able to make both of those payments. I am in nursing and as of yet, have never had difficulty working. The problem here is that as nurses, we are terribly underpaid in northern Florida in comparison to every other state in the US.
So by not reafirming, we would have to give up the house and the car, isn't that correct? What would be an advantage to that?
I really appreciate everyone's input and have read through multiple posts. So, I really am listening. Maybe just not understanding?

Did you read the thread that AC mentioned on Page 1 of this discussion? That should help clear things up a bit.