vehicle exemption and reaffirming load

[alltappedout]

I just renegotiated my car loan balance of $2500; car is worth about $4700 (kelly blue book). Modified loan (not a new loan) payments are now an affordable $110/month instead of $368/mo. I understood that I could "reaffirm" this asset. Can anyone help me understand this? I'm in California and would be filing under ch7 and CA's system 2 exemptions. That would allow me $3300 for vehicle plus there is wildcard of $1100.
I have the Nolo book and am a newbie here on the forum. Any help would be appreciated.

Ali

[canusaybroke]

as long as your exemptions cover the "equity" you are thinking correctly....

[alltappedout]

Thanks.
someone else also suggested that since I do not own a home, that the homestead exemption would cover car. And by reading other posts, it appears that the Credit Union will issue their own reaffirmation agreement. What do I do? Do I have to re affirm? probably, yes?

Thanks.
Ali

[LuciluS]

Go read the 'Original Note' and then the 'Refinancing Note'. Most CU's (I worked for one for awhile) have a clause requiring you to reaffirm or give them the vehicle.

I read some of your other posts. I would be concerned about losing your job as you said they were 'not for BKs' if you didn't sign. I don't recall what State you live in, but in AR they can fire you for just about anything. Not legal for a BK, but they will find another way.

I see you maybe filing Pro Se. Because of your job? or just the Money? You don't have to answer me. I just wanted to let you know there are so, so many different Scenarios and some are State/District specific.

I was an Accountant before a car accident deemed me disabled. I've been working on our Bankruptcy since late last Sept. when we hired our Attorney. I've met with him twice and will meet with him again in late July or early Aug. as we are not filing until 9/30/09 to let some income drop off. Gee, I was pretty confident until I was told on this forum I can't pay a hospital (hubby in for a week in April) over $600 before we file because it will be considered preferential treatment.

Wishing You Good Luck if/when You File!

Luci