Question Converted Ch 13 to Ch 7- Retained Cars and Mortgage

[maxvent]

Hello- been reading helpful advises since we started our BK journey in June 2018. Our case got converted to Ch 7, Aug 2020 and we already had our 341 meeting last 09/21/2020. The very next day Ch 7 Trustee issued the notice of no distribution and 2 days after old trustee from ch 13 issued the final report and case converted notice together with the overpayment check

My question is, since we continued paying our creditors for mortgage and vehicle outside ch 13 plan will these lenders automatically show up as regular creditors in our report once we get our dischargeD? we have asked our attorney if that's the case and they said yes. I don't remember signing a re affirmation but in our schedule I&J they are listed as "RETAIN and CURRENT" . Thank you in advance for any insights...

[despritfreya]

If you do not officially reaffirm the loans they probably won't be reported to the credit reporting agencies other than "included in bankruptcy" with a $0.00 amount owed.

Nevada is within the 9th Circuit. There is no such thing as a "retain and pay" as it relates to personal property. Please talk to your attorney about the potential "need" to move forward with requesting a Reaffirmation Agreement from the car lender. Such is not necessary for the mortgage.

Des.

[maxvent]

Thank you so much for the quick reply. I will email our attorney for reaffirmation forms. One of the car is from Toyota Financial (2nd car) and have seen from some post that it’s either your reaffirm or they repo even when you continue to pay...
We are not planning to buy new cars and the first car only has 11 payments left with state farm bank still in very great condition.

[justbroke]

Toyota Financial Services, Ford Motor Credit Corp (FMCC), and just about every credit union requires a reaffirmation, redemption or surrender. The 11th circuit, just as the 9th, require redemption, reaffirmation or "return" (surrender) for any "personal" property (such as a car).

With only 11 payments remaining, it would be a no brainer, for me, to choose reaffirmation. You will need to review your personal situation. In fact, TFS may not even want to do a reaffirmation since there's less than a year on the note. Only TFS can answer that question.

(Also because it was a conversion from Chapter 13 to Chapter 7, the auto lenders may not have even noticed. For example, did you receive a reaffirmation agreement from the auto lenders before your 341 Meeting?)

[maxvent]

Thank you JB for the insight. We sent an email to our Atty last Monday and they said there’s no re-affirmation form received from both car note (State Farm Bank and TFS) I just checked Pacer and there’s no new update in the docket. State Farm car note is the one with 11 months left and TFS is fairly new, got it Nov 2017...

i might just asked hubby to call TFS and asked about reaffirmation paperworks if needed...

[justbroke]

TFS will likely not speak with you. All communication should go through your attorney.