Reaffirmation - lawyer is pressuring me to reaffirm car

[TXskyblue]

Ch7, 341 done with no objection, waiting for 60 days with hopefully no objections from UST.

I have a house worth 150k that I owe 100k on. The lender is a local credit union.

I have a car worth 20k that I owe 24K on. The lender is Bank of America.

After the 341, the lawyer was pressuring me to reaffirm. He repeatedly said there is no longer such a thing where you continue to make payments and you keep the car, but no reaffirmation agreements is signed. This strikes me as odd because I've read all over the forum and elsewhere on the internet exactly the opposite.

At first, I thought he might just be looking for more fees. However, he said reaffirmations are quite easy and I could pay him another $350 to handle it or I could just do it myself, which he recommended. So, he doesn't seem to be just trying to get more money from me since he really thinks I should just do it myself.

I 100% plan to stay and pay in the house. Regarding the car, I'd much prefer to keep the car. I've done the math and with my newly-ravaged credit report, there is no way I'd get decent terms for another loan. I'd end up paying as much as I am now for a crappier car if they take back the car I have now. However, I am not married to the car and if I have to, I will get a different one.

I'm at a bit of a loss as to what to do here.

[tobee43]

the reaffirming that is discussed on this site applying to "never or don't reaffirm" is mainly dealing with the house. many people when wanting to keep their cars reaffirm that loan. many people reaffirm for exactly the reason you atty told you. especially if you intend to keep it. however, not the house. you still want the option, to walk if you need to. one never knows what happens down the road and you may decide not to keep it. that's where people you see pay and stay. again, not unusual that the bank wants your car reaffirmed. if you end up leaving your home you will a car to help you get down the road so again, it does make perfect sense.

[TXskyblue]

So you think Bank of America is going to require me to reaffirm the car or else they'll repo it even if current?

My payment is due on the 1st so I'd like to have a plan before then. If they're going to repo it, I'll just not pay the next 2 payments and save the $1000 in skipped car payments to use towards another car instead of giving it to BOA.

Should I call BOA and ask them? I'm not sure where to even start.

[tobee43]

well not all of the banks ask for a re-affirmation. if they haven't asked i certainly wouldn't call and bring it to their attention. if it is only your atty requesting you do this, simply tell him NO, not unless the lender (boa) requested themselves.

it also depends on whether you intend or really want to keep the car. again, if it's just your atty pressuring you into signing i would absolutely go tell him/her they work for you and there will be some decisions you will making alone. however, again, if the asking of the reaffirmation is coming directly for boa and you want to keep the car i would sign even in a no asset 7. for us and we were not in that situation since we voluntarily surrendered one of our vehicles and the other had no loan so that is the one we kept. we no longer had a use for 2 cars when we both lost our jobs. again, if you need and want to keep the car no harm, however ONLY if boa is requesting it. hopefully others will chime in and explain a bit better than i.

[LadyInTheRed]

Should I call BOA and ask them? I'm not sure where to even start.

Yes, call and ask what their policy is. Ask for the bankruptcy department.

[tobee43]

Yes, call and ask what their policy is. Ask for the bankruptcy department.

just a wonderin ....

why would one do that if boa has already been properly notified of the pending bk? if they wanted the OP to reaffirm they would have requested by now in the chapter 7 proceedings to OPs atty, that's procedure? all affirmation etc. are suppose to go directly via the attys that are rep'ing the client.i wouldn't draw any unsolicited attention to myself and unless the bank has chosen not to follow their own procedure in their request i certainly wouldn't ask them their policy. we know after they discharge they are SOL if they didn't act on their own policy. that's their fault not OP's. i just wouldn't bring it to their table. just a thought.

[TXskyblue]

well not all of the banks ask for a re-affirmation. if they haven't asked i certainly wouldn't call and bring it to their attention. if it is only your atty requesting you do this, simply tell him NO, not unless the lender (boa) requested themselves.

I'm pretty sure my attorney contacted them.

Regarding my house, they emailed me a copy of a proposed reaffirmation agreement that has a real signature from someone at my credit union.

Regarding the car, they emailed me a copy of a proposed reaffirmation agreement that does not have a real signature but has a date of exactly 5 days from the date I filed my case. It seems like the only way it would have gotten done that quickly would have been if the paralegal at the office contacted them.

I'm debating calling them and asking for their bankruptcy department like LITR suggested. But, I also don't want to get undue attention. Maybe I could ask anonymously and just ask what their general policy is.

[tobee43]

I'm pretty sure my attorney contacted them.

Regarding my house, they emailed me a copy of a proposed reaffirmation agreement that has a real signature from someone at my credit union.

Regarding the car, they emailed me a copy of a proposed reaffirmation agreement that does not have a real signature but has a date of exactly 5 days from the date I filed my case. It seems like the only way it would have gotten done that quickly would have been if the paralegal at the office contacted them.

why????

I'm debating calling them and asking for their bankruptcy department like LITR suggested. But, I also don't want to get undue attention. Maybe I could ask anonymously and just ask what their general policy is.

yes, that would be a better way to do it. but again, if it's just the car and you intend to keep it no harm no foul.

i wouldn't ever reaffirm the house tho. you can't be forced to do it. i hope you read des's sticky on why it's not a good idea to reaffirm your home http://www.bkforum.com/showthread.ph...-very-bad-idea

you could use some of that information to throw onto your atty

[LadyInTheRed]

I would call for piece of mind. Other Bkforum members have called their lenders and were told that as long as payments are kept current, they wouldn't repossess. If you are worried about drawing undue attention, ask anonymously. With these big institutions, I really doubt asking the question is going to cause them to take action they wouldn't have taken any way. They make their decisions based on standard policy and thier bottom line.

[TXskyblue]

I tried calling anonymously, but they won't speak to you without identifying yourself so I went ahead and gave them my information.

The guy was actually really nice and point blank said that even without a reaffirmation, as long as I continue to make my payments and stay current then BOA will not repossess. I just logged into my account and bill paid this month.

To be honest, I'm really surprised at how forthright BOA was. I figured they'd try to hardball me but I guess they do this everyday all day and would rather just get their money if they can.

[tobee43]

well that's excellent to know B of A is improving their customer service! especially on the topic you called about. makes sense what the guy said, BoA doesn't need another used car! for that matter not even another house. if then, i had a choice of course, i would opt to not affirming, but that's just me.

[Drazil65]

We filed 12/2011 and was discharged 3/2012, BOA held our car note at the time, we were not late (never) and we did not reaffirm. We continued to pay with no problems until the car was paid off at the end of 2012. They never bothered us or ask us to sign anything. Also had online access throughout the entire process so continued to pay online. Good Luck.

[Fallonedward]

I would also not reaffirm the house, We discharged in early 2011 and two years later we are still struggling and my soon to be ex has not been able to secure a job he has been able to hang onto longer then a year, his current unemployment is only valid now till the end of Sept. at that point he will be walking away from the house. Since the future is not guaranteed I would make sure that you have the option to walk if you need it...

all the best

[ccmisery]

I still think some creditors allow you continue making payments without reaffirming, Ford Credit is not one of those and I speak from experience. I had to reaffirm with them, but it all was done through a local attorney they have handling their cases. Nothing painful about it, but it is risky since if you lose your means to pay for it, your still liable. Having lost my job twice in a year, I felt scared to do it, but I need a car so it's a crap shoot.

I would have thought when you filled all your paperwork and listed the car and your intentions for it, to surrender or keep paying, that BoA would have had their attorneys contact you or your lawyer to demand reaffirmation documents signed, but maybe they are one of those who still is not strict on doing it?

[catleg]

I think the real issue with reaffirmation is for the creditor having protection against loss that would be insured. With a house if you stop paying the mortgage the lender will still pay for the insurance. With a car, they often ask for proof of insurance at the beginning of a BK case (especially a 13) because when you have no equity in a car, your collision/comprehensive insurance protects mostly the lender's interest in the car not your own, so you may be tempted to drop them. If you're young and have a bad driving record, dropping insurance could be a huge savings.
If you're older and a good driver, the savings are small. If you reaffirm they can still come after you for a deficiency if you wreck the car regardless of insurance.