My credit report : Toyota removed from Credit report???

[postie]

My 341 is coming up real soon. I intend to reaffirm my car with Toyota Financial Services but I checked CreditKarma and it gave me an alert that it was removed from my credit report (!?) Is this correct way to do it? I mean I still owe half of original balance with about 3 years and 3 months to go (Although I think it can be paid off by next tax refund in March of 2016).

My questions are:

1) Still making payments but would Toyota still report to credit bureaus? If not while in BK7, what happens once it's reaffrimed and discharged will Toyota put back on my credit report AND show payment on time (to help with rebuilding?)

2) Should I be concerned if Toyota removed from credit reports?

Anything I should know, do post here. Thanks so much!

[LadyInTheRed]

Toyota is not required to report anything on your credit reports. They probably removed the account to avoid being accused of violating the automatic stay.

Many bkforum members have reported lenders not reporting a reaffirmed debt others report that the lender did begin reporting after the BK closed. It really depends on the lender's policy.

Why are you reaffirming? I hope it isn't for credit reporting purposes.

[postie]

LITR,

I need the car for work commuting...(my work is 21 miles each way with no good public transit options since I start too early in the morning). My car is 2 1/2 years old and in excellent condition.

[LadyInTheRed]

Do you realize that in most cases you can continue to make payments and keep your car without reaffirming? There are some lenders who will repossess a current loan that isn't reaffirmed, but, based on what bkform members posted in the following threads, Toyota isn't one of them.

http://www.bkforum.com/showthread.php?80930-Lender-never-offered-a-reaffirmation-agreement&highlight=reafirm+Toyota

http://www.bkforum.com/showthread.php?79862-Repossession-with-payments-kept-up&highlight=reafirm+toyota

[Drazil65]

No need to reaffirm, just keep paying and keep current, car will be yours once it is paid off.

[postie]

How? Toyota sent me a letter asking if I want to reaffirm? So you're saying I should ignore it and keep paying and it would show up on my credit report?

[LadyInTheRed]

How? Toyota sent me a letter asking if I want to reaffirm? So you're saying I should ignore it and keep paying and it would show up on my credit report?

Yes, you should ignore it unless your attorney tells you otherwise. You are not required to reaffirm. It only benefits the lender unless they are willing to lower your interest rate in exchange for a reaffirmation.

There is no guaranty that Toyota will report to credit agencies if you reaffirm and their actions so far suggest they won't. Besides, having it appear on your credit report is a terrible reason to reaffirm. You don't know what the future holds and it would be a shame if something happens to prevent you from paying the car off and you end up with late payments on your credit report and a deficiency judgment.

[bcohen]

As others have already alluded to, reaffirmation protects the lender--not you! That being said, I would only agree to reaffirm if the lender were willing to return the favor, such as by agreeing--in writing--to lower your interest rate.

[postie]

Had my 341 today and yes my lawyer refused to let me reaffirm for Toyota and he said just keep paying if I intend to keep the car. Thanks all!

Oh yeah 341 went with a breeze! not even 2 minutes!!!!!!!!