So I was planning on keeping my car until my Chapter 7 BK discharges in Feb and then finance something. Unfortunately, the lender has filed a relief from the stay and has the hearing on Feb. 4th. From what I read it seems as though the court will approve this relief so it would be a waste of time for me to even attend the hearing. What should I do now? I need a car and I'm sure no one will finance me before my BK discharges. Any help would be appreciated.
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Of course, you can go to the hearing and argue your case before the judge. If you did not put "surrender" on your Statement of Intentions, you can argue in court that you are saving up money to bring the loan current again (even if that is a lie) or that you are planning to do a Redemption refinance (again, even if that is a lie). In that case, the judge will probable NOT allow for the stay to be lifted, so you can keep driving the car payment-free until your discharge is granted, at which point the auto-stay ends.
If you did put "surrender" then you don't really have a leg to stand on, because the attorney for the finance company will argue that since you have indicated that you are surrendering the collateral, they are entitled to have the stay lifted as a matter of law, and the judge will approve it.
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Originally posted by bcohen View PostOf course, you can go to the hearing and argue your case before the judge. If you did not put "surrender" on your Statement of Intentions, you can argue in court that you are saving up money to bring the loan current again (even if that is a lie) or that you are planning to do a Redemption refinance (again, even if that is a lie). In that case, the judge will probable NOT allow for the stay to be lifted, so you can keep driving the car payment-free until your discharge is granted, at which point the auto-stay ends.
If you did put "surrender" then you don't really have a leg to stand on, because the attorney for the finance company will argue that since you have indicated that you are surrendering the collateral, they are entitled to have the stay lifted as a matter of law, and the judge will approve it.Filed 11/14/13 ____FICO 515
341 12/23/13 ____FICO 545
Discharged 03/03/2014
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Yes, since your intention was not to surrender, you can reasonably argue that you are attempting to save up money to bring the loan current, and/or to put down towards a redemption loan on the vehicle. The lender's attorney cannot prove otherwise, and the judge will generally give the debtor (you) the benefit of the doubt. You might as well show up and contest this attempt to lift the stay, so you can drive the car for another month while you (hopefully) save up for a down payment to buy something else.
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Understand that right after your discharge, it is extremely unlikely that anyone other than a 'Tony Soprano' type of loan shark goon is going to finance you. And your interest rates will be extreme.
Why not do a search through the forum for information on a '722 Redemption'. Here is a link to a list of threads containing those search terms:
Good luck!"To go bravely forward is to invite a miracle."
"Worry is the darkroom where negatives are formed."
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Originally posted by AngelinaCat View PostUnderstand that right after your discharge, it is extremely unlikely that anyone other than a 'Tony Soprano' type of loan shark goon is going to finance you. And your interest rates will be extreme.
Why not do a search through the forum for information on a '722 Redemption'. Here is a link to a list of threads containing those search terms:
Good luck!Filed 11/14/13 ____FICO 515
341 12/23/13 ____FICO 545
Discharged 03/03/2014
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Originally posted by Hopefull1983 View PostWow what a surprise. I emailed the lender with some questions and they emailed back with a reaffirmation agreement! They're going to reduce the loan balance to 10k over 60 months at 8%!!! The car is a 2008 and this will give the car a considerable amount of equity now and the payments are super reasonable. Wow what a great surprise. They said the judge may or may not approve the agreement but they will still allow me to ride thru. I don't see why the judge wouldn't approve it because there is no way I'll find a better deal than that. I can't believe they knocked off over 6k from the balance. Amazing! I'm going to send in the agreement and attend the hearing once the court schedules it. I'll update once that happens.
As an aside, you're in the 9th circuit and it's ruled that all the bk code requires is, you attempt to reaffirm. You don't have to have the agreement approved.
At that point, you are allowed to ride through.
Looks like you are in a really good spot!
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Originally posted by keepmine View PostThe judge does not care what sort of deal you have. He/she is only interested in, is this in your best interest. Since you'll be on the hook for any deficiency balance should you default, many judges rouinely refuse to approve these agreements.
As an aside, you're in the 9th circuit and it's ruled that all the bk code requires is, you attempt to reaffirm. You don't have to have the agreement approved.
At that point, you are allowed to ride through.
Looks like you are in a really good spot!
Originally posted by keepmine View PostThe judge does not care what sort of deal you have. He/she is only interested in, is this in your best interest. Since you'll be on the hook for any deficiency balance should you default, many judges rouinely refuse to approve these agreements.
As an aside, you're in the 9th circuit and it's ruled that all the bk code requires is, you attempt to reaffirm. You don't have to have the agreement approved.
At that point, you are allowed to ride through.
Looks like you are in a really good spot!Filed 11/14/13 ____FICO 515
341 12/23/13 ____FICO 545
Discharged 03/03/2014
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Originally posted by keepmine View PostHonestly, there is really no good reason for you to reaffirm.Filed 11/14/13 ____FICO 515
341 12/23/13 ____FICO 545
Discharged 03/03/2014
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Originally posted by keepmine View PostHonestly, there is really no good reason for you to reaffirm.
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Interesting couple of recent events. The lender called me and said they are removing the motion for relief of automatic stay. The lady was super nice and said that shell be on the phone when I attend the affirmation hearing so if the judge has questions she can answer them. She said they judge should approve my agreement because of the very favorable terms they adjusted the loan to. She mentioned I needed to file my financial management certificate so that she could file the removal of the motion for the stay. All very interesting. This lender really doesn't want the car back lol. I'm happy to keep it now because of the reduction in balance and low rateFiled 11/14/13 ____FICO 515
341 12/23/13 ____FICO 545
Discharged 03/03/2014
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