Georgia Chap 7--reaffirm car and house or not?? CONFUSION.

[catlfuzzy]

Greetings all...

I am very close to filing chapter 7 (one week); and I went to 4 attorneys to get their views on it and see which seemed the best fit (and looked at pricing) and one thing I REMAIN unclear and confused on is whether I will be okay if I do NOT reaffirm house and car.

There seems to be even differing opinions among attorneys about reaffirming (or not). There is not what seems like a final answer on it.

My situation: I am filing because of massive credit card debt. No workaround for that. HOWEVER I am perfectly current and never late on car and house(mortgage).

My car is through Carmax Georgia and they have told me (Carmax credit) that if I am current and up to date they do not require reaffirmation. I would reaffirm, but am about 8k upside down on car.

The mortgage is via Wells Fargo, and again up to date and current. Never late. I do not want to move or lose house, but really don't want to reaffirm, because again, the values for houses around me have dropped majorly, I am probably 50k upside down......and god forbid if I lost my job or something, I don't want to be foreclosed on and sued for the difference. Bankruptcy is a chance for me to write everything off, protect myself so to speak.

i am very aware that car and house will no longer hit credit report if I don't reaffirm. I am fine with that.

SO....is it okay NOT to reaffirm Wells Fargo Mortgage and Carmax loan, in Georgia? I'm in unique situation because I am current.

I need to make a decision and need to know what to list on the bankruptcy paperwork as to my intent.

Thanks for any and all input.

Regards!

Confused in Atlanta

[catlfuzzy]

and what to put on statement of itent?? definitely not surrender, do i say "reaffirm" but not do the paperwork? Thanks again.

[frogger]

about 8k upside down on car.

I am probably 50k upside down

There will be others to come along and assist you with the correct wording, however just stop for a minute and look at the quote above. You should absolutely, positively have no question as to whether to reaffirm the debt or not.

BK is meant to be a fresh start. Not a start where you are already 58K upside down.

Welcome.

[catlfuzzy]

There will be others to come along and assist you with the correct wording, however just stop for a minute and look at the quote above. You should absolutely, positively have no question as to whether to reaffirm the debt or not.

BK is meant to be a fresh start. Not a start where you are already 58K upside down.

Welcome.

Thanks for the welcome! I didn't ask my question clearly (clear communication is not my forte). I understand why it makes sense NOT to reaffirm; I am worried that Wells Fargo will forclose even though not late..just because they can (bankruptcy is in default of loan) and worried Carmax will reposess as well, even though current.

Those are my concerns.

[ld2366eh]

If you are upside down, there is no benefit to the banks to foreclose or repossess. Especially if you are paying. I wouldn't reaffirm. That's just me...

[catlfuzzy]

If you are upside down, there is no benefit to the banks to foreclose or repossess. Especially if you are paying. I wouldn't reaffirm. That's just me...

That's the route I'm going to go (not reaffirm), just wonder if I will feel nervous about "what if" all the time. Curious is anyone knew if Wells Fargo would be vindictive, just because. Thanks!

[basketsbears]

We did not reaffirm our house, let one vehicle go back, and because my husband insisted, we reaffirmed our Jeep. I am OK with that, but for sure would not have reaffirmed our house. Like you, we have not been late on house or cars.

Good luck!

[TheBajan]

Before I found this forum, I didn't know what it meant to reaffirm anything. In our case, there was nothing to reaffirm. We are in a 13 and the primary mortgage does not get discharged so we didn't need to reaffirm that and we didn't have any other secured debt. Reading the posts about this issue, I wouldn't. I would prefer to let the asset go rather than go through BK to come out the other side still owing $58K with no recourse.

Best of luck and Welcome!

The Bajan

[LadyInTheRed]

If carmax told you they won't repossess if you keep making payments, then don't reaffirm that loan.

Wells Fargo is extremely unlikely to foreclose if you keep payments current. They make the most money over time if you continue to pay interest on the loan. Your situation is not as unique as you think. Many BKforum members file Chap 7 without reaffirming their mortgages with the intent to stay and pay. I have yet to hear of a bank foreclosing on somebody who was current on payments.

[LadyInTheRed]

and what to put on statement of itent?? definitely not surrender, do i say "reaffirm" but not do the paperwork? Thanks again.

I've heard it done in 2 different ways. Either you check "Reaffirm the Debt" or you check "other" and indicate that you will retain and pay. I believe some districts don't allow you to state an intent to retain and pay. If you are in one of those districts, you say you will reaffirm. You are not obligated to reaffirm just because on the day of filing you state that you intend to.

[catlfuzzy]

If carmax told you they won't repossess if you keep making payments, then don't reaffirm that loan.

Wells Fargo is extremely unlikely to foreclose if you keep payments current. They make the most money over time if you continue to pay interest on the loan. Your situation is not as unique as you think. Many BKforum members file Chap 7 without reaffirming their mortgages with the intent to stay and pay. I have yet to hear of a bank foreclosing on somebody who was current on payments.

Exactly what I wanted to hear....good information.

THANKS for this informative resource and website !

[basketsbears]

Our attorney checked "reaffirm" on house & cars. We only reaffirmed one car. When asked by the trustee at our 341 meeting if we had reaffirmed yet, she said, "still negotiating", which we had been.

HTH!

[catlfuzzy]

I suppose..no, I know that's the way I want to go (do not reaffirm house, but remain) and not reaffirm car but keep paying. It's in my nature though, to worry that wells fargo will start some mess down the line, just because they can. I'll have to make peace with it!!!!!

[catlfuzzy]

Well....I did my part in filing.....as soon as the atty does his part, it will begin. Let the games begin......................

[Pizza]

I also have Wells Fargo and I am at about break-even on the mortgage note. My attorney strongly advised that I do not do a re-affirmation.