ReAffirming a Car Loan

[ess]

I was to be discharged on 6/25 but now it's been extended because the bank that holds the loan didn't file the proper paperwork for the reaffirmation. I have to go back to my attorney's office and resign the papers. I'm wondering if anyone ever had to go before the bankruptcy judge to have their loan reaffirmed? There is a hearing date in July but it's still unsure whether I have to go or not. My attorney said sometimes the judge just approves it without having to be there.

[AngelinaCat]

We didn't have to attend ours, which was great as it would have put quite a hardship on us. We live in Florida, and our CU is in Dayton, OH. All that paperwork had to go before their judge.

[ess]

Really? They didn't have to file the paperwork in the state/area you filed for BK? The bank that holds the car loan is in MA but I'm in CT and they have to send the paperwork to the BK judge in my area. Maybe CU's work differently? I'm hoping I don't have to go. The BK court is only three blocks from where I work but it still means having to take time off to go and that's going to cause a problem since someone will be on vacation at that time.

[nceguyfromne]

I did not have to attend the hearing for mine, but it delayed my discharge by quite a bit (about 3 months), which was just the time it took for the paperwork to slide across the judge's desk and him to sign it.

I sure hope your car is more reliable than mine was! I reaffirmed two vehicles in my Chapter 7 a couple years ago. My BK attorney told me that if I planned on keeping the cars anyway, I might as well get "credit" (in terms of my credit report) for paying them off. I admit, it was helpful for my credit score, but one of the cars decided to die with about $3,500 still owed and since I reaffirmed, I was on the hook for all of it. Nothing quite as painful as having to make a year's worth of payments on a car that doesn't run anymore, not to mention having to keep it in the garage, taking up space for a year, until it was paid off and we could sell it to a mechanic.

[AngelinaCat]

Really? They didn't have to file the paperwork in the state/area you filed for BK? The bank that holds the car loan is in MA but I'm in CT and they have to send the paperwork to the BK judge in my area. Maybe CU's work differently? I'm hoping I don't have to go. The BK court is only three blocks from where I work but it still means having to take time off to go and that's going to cause a problem since someone will be on vacation at that time.

Our attorney filed the paperwork in our district, only to have the CU say "Oh no you don't. It has to go before our people and in our district." Which makes sense, as the loan had originated in Ohio, and we were making payments to the CU in Ohio.

[ess]

Just an update on this. Here it is July 24th and I'm still waiting for closure. The bank filed the reaffirmation papers AGAIN and again they were sent a deficiency notice. The court told my attorney they would approve the reaffirmation providing they receive it before the 7/23. They did receive it but it was filed wrong for the second time by the bank. This case should have closed by 6/25. I keep checking Pacer, still nothing.

[CUbuffs90]

I just went in last thursday before a judge to have my car loan reaffirmed.

[AngelinaCat]

Good luck to both of you!

[ess]

Just checked Pacer and another court date has been scheduled for 8/1. I don't believe I'll have to attend it since I wouldn't have had to attend the last one. This is turning into a joke since it's the bank that's not filing the papers correctly. If they can just get their act straight the judge has already said she would approve.

Thank you AngelinaCat.

[ess]

I just went in last thursday before a judge to have my car loan reaffirmed.

Good luck!

[Avand18]

My Atty said I should attend mine or else the reaff. would be denied. I guess mine knows the local judge well enough. Just do what your Atty says I guess. Our lender is Ally who is one that will repossess even if payments are current, so if your hands are tied, they're tied. My vehicle is also a 2012 with 2-grand of cosmetic damage, so the deficiency there would've been astronomical!

[ess]

Well I tried. The bank submitted the paperwork twice to the court and twice they got a deficiency notice that it wasn't filed correctly. They had until 8/1 to resubmit, the judge had already said she would approve it if it was done correctly. I even talked to the bank twice about. My attorney called me yesterday to tell me it wasn't going to be approved. I told him there was nothing we could do that I couldn't go put it together for them. This is what Pacer says: Amended Reaffirmation Agreement filed by Debtor XXX....DISAPPROVED FOR FAILURE TO PROSECUTE. They must have a bunch of morons working in their legal department. It is Brookline Bank.

[basketsbears]

My Atty said I should attend mine or else the reaff. would be denied. I guess mine knows the local judge well enough. Just do what your Atty says I guess. Our lender is Ally who is one that will repossess even if payments are current, so if your hands are tied, they're tied. My vehicle is also a 2012 with 2-grand of cosmetic damage, so the deficiency there would've been astronomical!

Are you sure Ally repossesses even if you are current? Others on here have said they can just keep paying. Our attorney is trying to work out reaffirmation, but doubt that we would sign them. Both of our vehicles are with Ally one is 2009, one is 2011.

Have you or your attorney talked with Ally to confirm they will repossess?

Thanks!

[btbeme]

Check with your attorney and ask that he gets well informed about the general movement that is coming about in many jurisdictions. Here in AZ it started with a single judge in Tucson but has since spread statewide that your application for reaffirmation gives you the legal grounding for keeping the property, even if the reaffirmation was denied. In AZ (not always, but becoming quite common) judges take the position that your APPLICATION for reaffirmation fulfills the requirements of the law. They take a VERY dim view of auto companies, etc that try to repo after you TRIED to reaffirm.

Just check. Drill your atty on the finer points and see if you can get some satisfaction.

[pikaroth]

I did reaffirm my car loan, through USAA, and like AngelinaCat said, it's a non-issue at least in Florida where I, too, am at. The paperwork from USAA came in, my attorney called me to see if I wanted to reaffirm, explained it all to me, and I decided to do it. I did have to go to his office and sign some forms and that was basically that. He sent it wherever it was going to go and it was done-and-done. This was all prior to even my 341 hearing. Thankfully my car is now paid off, and I am truly, finally, 100% debt free.