Made the decision to file Ch 7 and is needing some advice..

[Stat]

From people who have been through this and are going through this now.

I had planned on making 2014 the year to pay off past debt but to be honest, this debt is going on years old now and after my sister's suggestion in Jan of filing bankruptcy, and after giving it 2 months of thought, I went to my free consultation with the lawyer I plan to retain yesterday. He answered my questions and I feel really comfortable with him. It was the additional research I did yesterday after my consultation that I have a few questions about.

I will be filing Ch 7 no assets bankruptcy within the next two weeks. The only thing I have is a car. I need my car for transportation. My car is a 2011 Hyundai Sonata which I bought 1 year and 1 month ago. The amount financed was 15,001.00 at 18% by Exeter finance for 66 months(5.5 years). I still owe 13,621.45 as of today. Payments are 371.46 a month. Yes, my payments have been going to interest. The value of the car now is only 8,634 or around that. I cannot remember the exact number. Oh and I am not behind on my payments. In fact, my payments are always payed a week earlier than the due date.

I asked my lawyer about whether it would be worth it to reaffirm my car. He told me that yes, I need a mode of transportation, but he told me that honestly it would be wise not to reaffirm that loan at all. He told me that I'm already paying 40% more than what it's worth. He said that the finance company may be willing to negotiate the terms such as lowering the APR or lowering the balance but they don't have to negotiate anything about the loan.

After additional information yesterday and reading tons of threads here, I will be filing in Texas. I gather that in Texas, that a judge actually has to agree and sign a reaffirmation, correct? So my questions are as follows:

Since I have not read or have been able to find much about people and their dealings with Exeter finance, I'm not sure if they require that I reaffirm my loan with them.

If an attempt to reaffirm is denied by the judge and Exeter finance is a company that requires it, how does that effect me and the car? Will I have to surrender it?

I mean, I would love if the balance could be lowered and APR could be lowered and if I had to, I could continue to pay the 371 but I don't really see a judge approving a reaffirmation of the same loan at the current terms based on all that I pay now in addition to that car loan.

I was looking towards reaffirmation but I'm not so sure now. I'm sorry this is so long. I have more questions but I wanted to get the biggest question out of the way first.

[bcohen]

No way would I agree to reaffirm a high-interest car loan where the collateral (the car) is worth so much less than what is owed. The high monthly payments which mostly go toward interest make reaffirmation an even worse proposition. Unless the finance company is willing to grant some significant concessions--such as lowering the balance and/or reducing the interest rate--I wouldn't reaffirm. That being said, if you try to reaffirm and the judge denies the reaffirmation, the finance company cannot legally repossess unless you fall behind on payments.

[tobee43]

one needs transportation, i wholeheartedly agree with bcohen, if you continue the payments and do not reaffirm they can't take the car. the judge would not likely not stop the affirmation, however, it could be the perfect time to attempt as stated about to attempt to renegotiate the loan, after all, you have nothing to lose. in fact, i would even make a call and see if they would do that now? never hurts, you have good and on time.

and welcome to the forum!

[AngelinaCat]

Hi Stat, welcome to the Forum.

For the most part, none of the members here recommend reaffirming a loan--especially on a car. We did not have this issue in our BK, but in the many years here as a member, I have read of many members simply keeping the payments in full, on a timely basis, and not having problems with that.

Good wishes to you!

[keepmine]

Ask your lawyer about 722 redemption financing.

https://www.722redemption.com

[Stat]

I would like to thank everyone for welcoming me to the forum and thanks for responding to my question. After reading as much as I have about reaffirming a car loan that is upside down, I no longer plan to reaffirm the car. Now I need to know if my finance company requires that I must in order to keep the car. I feel like I want to call and ask but I don't want to raise any red flags before I actually get the ball rolling.

Prior to my consultation yesterday, I only knew that I had to have my car but didn't know much about reaffirming it. My lawyer strongly advised against it and after he did, and I found this forum, now I see why I shouldn't..

Hopefully, I can have the option of not reaffirming it and just pay and stay or if I have to reaffirm it and they refuse to change the conditions of the loan, that the judge rejects it and it becomes a pay and stay, which I have the feeling the judge would reject based on what it is now. Reading the many threads in the Ch 7 forum make me realize that the loan is really of no use to me once I get past all of this and the car is of use to me right now until I can get through all of this and several months after this is done.

So how will I have to list the car if i don't want to reaffirm it?

[AngelinaCat]

You can indicate on the form that you intend to reaffirm--just don't sign any reaffirmation papers. You are allowed to change your mind.

As for the lender, even if you do sign the reaffirmation papers, the BK judge takes a look at your case, and if he/she decides that this would prove to be an undue hardship for you, he/she will rule against it. You will have done your part and the finance company's requirements will have been satisfied.

[Stat]

Thanks for answering everyone! I have been kinda busy so I haven't been able to answer like I wanted to but I have decided not to reaffirm the car. I will put it on there as if I plan to but I do not plan to sign it when it's all said and done. I do have another question. I have a emergency loan that I took out through the college I used to attend. This is not a federal student loan and this is not a sallie mae or other loan like that. This is more or less an institution loan. They are saying I took this out in spring 2011. I have requested paperwork that I supposedly signed releasing the funds to my student account. I cannot find where I signed for this in my student portal.

I am aware of what it says about the loans and about the educational benefit but I asked them 2 weeks ago for documentation saying that I signed for this loan. They have not discharged this debt and it's not on my credit report and it's not saying that I owe a payment. I have spoke with two people and both have told me who I needed to talk to. So I have left a vm and sent emails requesting info.

My question is do I need to just include this on my ch7 and include the correspondence that I tried to get this information verified as debt I owe but moreso...

I tried to to verify this personally to myself so I can know that this cannot be discharged so I can set up arrangements to start paying this. The amount is 782 dollars. This is a loan between me and the university for a semester I did not attend.

[keepmine]

Schedule it-it my well be dischargeable.

[bcohen]

If the university debt is unpaid tuition and fees--rather than a student loan for which a promissory note was signed--then it is dischargeable. Include it in your bankruptcy; don't waste money paying it!

[Stat]

Thanks for replying everyone! I was planning on adding it but I was wanting to see what kind of debt it would be classified as but since they cannot be bothered to provide me paperwork stating when, if, and where I signed for it, then I cannot be continued to be bothered trying to figure out if I need to attempt to pay it so I will just include it. I didn't even attend that semester anyway. Smh.

[despinda]

Hello. I realize it has been some time since you posted this thread, however I am in the same situation with an upside down car loan through Exeter and filing bankruptcy. I was wondering how it went with your bankruptcy and not filing the reaffirmation with exeter. Were you able to keep your car? How did Exeter react to the filing and not reaffirming?

[justbroke]

despinda Welcome to BKForum. Please re-read the forum rules on re-opening old threads. The original poster hasn't posted since October 2014 in any other area of this forum. The reason we ask that you just open a new thread is because most posters come and go and never return. I highly suggest that you just open a new thread asking your question. If the poster is still around, then they may respond.