Reaffirmation Agreement for Vehicles

[kajeno2001]

My husband and I filed Chapter 7 bankruptcy on June 7 and had our 341 on July 17 with no problems.

My question is regarding the reaffirmation agreements on our vehicles. I currently have a 05 Dodge Caravan that is finance through M&T Bank and I have only 4 payments on it. My intention was stated to reaffirm since it is almost paid off.

My husband has a 11 Chevy Silverado that he financed through SunTrust Bank about 4 months before bankruptcy since he did not have a car in his name. His intention was to reaffirm that car loan as well.

Our lawyer has not received any reaffirmation agreements through either bank and I am not sure when the lawyer should receive it since our 60 day will be up September 16 or should my husband and I contact our banks to ask them to send it to our lawyer.

Our lawyer says not to worry about it, that as long as you continue paying then they won't take it. I am not sure of that with some banks.

Thanks for any advice.

[baker21]

I can't answer the question as to what will happen (I'm sure the experts will answer that one). I can tell you we just filed Chap 7 last Friday, 7/19, and we have already received our reaffirmation agreement for our car from Suntrust. They faxed it to our lawyer on Thurs, 7/25. We purchased the car about 2 months before filing.

[LadyInTheRed]

Our lawyer says not to worry about it, that as long as you continue paying then they won't take it. I am not sure of that with some banks.

Trust your lawyer. He knows what is common in your state. If the bank hasn't approached you with a reaffirmation agreement, they probably aren't one of the lenders who will repossess if you keep payments current.

[AngelinaCat]

Yes. Trust Lady; she is a paralegal for an attorney in a different realm of practice. You are okay, as long as the payments are paid in full, and they are on time.

[btbeme]

If you are within 4 payments left, you should be OK. It will take about 3 months for your file to close, which would leave you with maybe one payment. In the interim, the lender would have to incur a buttload of filings and costs to try to get the court to allow them to reclaim the vehicle.

Pay it off ASAP after your 341. Exit BK with no debt on a vehicle. In the interim, the automatic stay will give you the opportunity to make this secured debt whole.

[stevie2012]

SunTrust is fast on reaffirmations, from my experience (I reside in FL). In my case, they required the reaffirmation or they were going to repossess my car (I've made 24 payments and never late). The trustee and my attorney agreed with the reaffirmation but it is yet to be shown on PACER. My 341 was 6 weeks ago.