Just filed today...need some advise

[Hopefull1983]

I just filed my own BK 7 petition today. The clerk said everything looked great and the judge approved an installment plan of $100 up front and $206 due in a month. This is all in Central District of CA.

QUESTIONS...

Should I reafirm or just keep paying the lender?

I have an auto loan which is reasonable and the car is pretty good. I was planning on reaffirming because:

I have no other option. I need a car for work. Obtaining a new loan is hopeless because my credit is shot.

Has anyone had luck recently in my BK district without reaffirmation?

My 341 is set for 12/23 and deadline for objections is 02/21.

[LadyInTheRed]

What is probably most important is who your lender is. Most lenders will not repossess as long as you keep making payments.

What is the value of the car and what is the balance of the loan? Are payments current?

[Hopefull1983]

What is probably most important is who your lender is. Most lenders will not repossess as long as you keep making payments.

What is the value of the car and what is the balance of the loan? Are payments current?

The lender is First Investors Servicing Group based out of Texas. Payments are current. The balance is about $1000 more than what the car is worth. Owe 14K

[dischargedbk]

As long as you remain current, you should not have any issue. The lender should learn of your BK as they should be included the schedules and creditors matrix. The lender will be notified by the court of the filing. I believe it is not good idea to do a reaffirmation agreement unless the lender requires it. Remember that once you reaffirm the debt and the discharge is ordered, you are on the hook for that debt post bankruptcy. I also believe that since you are filing Pro Se you will have to get the court's approval for any reaffirmation agreement. If you are using an attorney, then that is not needed... at least this is the SOP here in southern Florida district where I filed my BK Ch 7.

This is why I recommend the use of an attorney in handling bankruptcy filings. I get the whole thing of saving $$ going Pro Se, but this is a complicated area of law and should be handled with the use of an EXPERIENCED BK attorney.

[Hopefull1983]

As long as you remain current, you should not have any issue. The lender should learn of your BK as they should be included the schedules and creditors matrix. The lender will be notified by the court of the filing. I believe it is not good idea to do a reaffirmation agreement unless the lender requires it. Remember that once you reaffirm the debt and the discharge is ordered, you are on the hook for that debt post bankruptcy. I also believe that since you are filing Pro Se you will have to get the court's approval for any reaffirmation agreement. If you are using an attorney, then that is not needed... at least this is the SOP here in southern Florida district where I filed my BK Ch 7.

This is why I recommend the use of an attorney in handling bankruptcy filings. I get the whole thing of saving $$ going Pro Se, but this is a complicated area of law and should be handled with the use of an EXPERIENCED BK attorney.

Yes, you are correct the judge will hold a hearing in regards to my intent to reaffirm. I heard the judges out here really don't approve them often. If they deny it all is not lost. I should still be able to keep the car. At this point I'm going to contact the lender and let them know I'd like to keep the car and see what they say. I'll post my results later.

[tobee43]

i missed something here....NO monthly payments in a chapter 7 unless you were an asset case buying back your assets. if you were told to make monthly payments sounds like you got thrown into a 13 without you knowing it.

attys are your friends most of the time when it comes to filing. you could have found someone to handle your case for less than what you are paying.

best of luck and i hope it's just me missing something here.

[brokehmowner]

i missed something here....NO monthly payments in a chapter 7 unless you were an asset case buying back your assets. if you were told to make monthly payments sounds like you got thrown into a 13 without you knowing it.

attys are your friends most of the time when it comes to filing. you could have found someone to handle your case for less than what you are paying.

best of luck and i hope it's just me missing something here.

What state do you live in that the filing fee is more than the typical attorney fee? In my state the cheapest bk attorney I could find was $1,785, a small difference between chapter 7 and 13. The filing fee is nowhere near that.

[tobee43]

our chapter was less than 1700 in full. chapter 13's can run into the upper thousands, no matter what state you live in.

[LadyInTheRed]

i missed something here....NO monthly payments in a chapter 7 unless you were an asset case buying back your assets. if you were told to make monthly payments sounds like you got thrown into a 13 without you knowing it.

It isn't possible to unknowningly end up in a 13. If you file a Chap 7, you have to apply to convert to a 13. If you don't qualify for a Chap 7 and don't apply to convert, the case is dismissed.

I assume you are referring to the below statement in which case you are missing that OCKolby is talking about a installment plan for the court filing fee.

I just filed my own BK 7 petition today. The clerk said everything looked great and the judge approved an installment plan of $100 up front and $206 due in a month. This is all in Central District of CA.

Two payments for a total of $306 which is the Chap 7 filing fee.

[AngelinaCat]

Yes. OCKolby has just filed and hasn't had her 341 yet. If her case ends up being an Asset Ch7, then a payment plan could be in the future, but let's hope that it does not.

OCK, a Ch7 gets determined to be an Asset case, if you have more personal stuff listed on your schedules than are covered by your allowed exemptions. I don't remember all the details of your case, but I think you are going to be okay.

[bcohen]

This is why I recommend the use of an attorney in handling bankruptcy filings. I get the whole thing of saving $$ going Pro Se, but this is a complicated area of law and should be handled with the use of an EXPERIENCED BK attorney.

Of course, people who have significant assets to protect and/or have a complicated case should use an attorney. However, there are people--myself included--who are too poor to afford an attorney, and don't have assets to protect which come anywhere near an attorney's fees. There's a big difference between being cheap and being poor! BTW, I filed pro-se successfully this year, and managed to discharge all my debts without losing a thing.

[Hopefull1983]

Yes. OCKolby has just filed and hasn't had her 341 yet. If her case ends up being an Asset Ch7, then a payment plan could be in the future, but let's hope that it does not.

OCK, a Ch7 gets determined to be an Asset case, if you have more personal stuff listed on your schedules than are covered by your allowed exemptions. I don't remember all the details of your case, but I think you are going to be okay.

I think you all have missed or miss understood my original question. In regards to payments I was talking about the filing fee. The judge approved me to pay $100 up front and $206 a month after that. I'm a definitely a no asset case. My real question is should I reaffirm or just ride it out. Now that I think more and more about it I should ride this car through the BK and save those payments, assuming the lender doesn't file to lift the stay and repo. After discharge I'll go find something reasonable. I've read a lot of people having recent good luck in getting decent financing after a recent BK.

[dischargedbk]

Save your $$ and ride it out during the BK automatic stay if you don't intend on reaffirming the car. Just file that your statement of intention is to is to do so and that you have properly listed the car and that you are surrendering it. Now the lender may seek to repossess the car if your reject your lease / or surrender the car , but in my case, they did nothing until after discharge.

I think you all have missed or miss understood my original question. In regards to payments I was talking about the filing fee. The judge approved me to pay $100 up front and $206 a month after that. I'm a definitely a no asset case. My real question is should I reaffirm or just ride it out. Now that I think more and more about it I should ride this car through the BK and save those payments, assuming the lender doesn't file to lift the stay and repo. After discharge I'll go find something reasonable. I've read a lot of people having recent good luck in getting decent financing after a recent BK.