*update* FORD Credit reaffirms....

[CPO]

Received letter from Ford Credit that confirms the account access blackout, although in the same letter it also states that you can get account access with the "new" website...

Whatever...

I always did have access, just had to accept the "confirmation" that the action was not a "demand" for payment.

Letter is wordy, but generally says that FORD does accept reaffirms...

And absolutely no "ride throughs..."

A call from me has them on tape stating that without a reaffirm they will repo regardless if the account is current or not...

Interesting...

And a confirmation that they claim to be the only creditor in the nation that does that. (no reaffirm = repo even with a current account).

So, we shall see. I have other transportation if I decide I don't want the car....and FORD can eat the deficiency balance...

It may keep me from making one payment to many...

Also, the letter states that if you set up an automatic payment from your account to theirs, ie direct deposit or set up the auto pay feature on their website from any of your accounts, that's cancelled.

However, if you use a third party type "web bill pay" service, that's fine and there will be no issues and your account number stays the same.

Payment for snail mail is to the "bankruptcy" dept:

Ford Motor Credit Company
National Bankruptcy Service Center
P.O. Box 537901
Livonia, MI 48153-7901

Regards,

CPO

[Granny]

Well, they lied to you CPO, but I may have been the exception to the rule. I was almost 30 days late when I filed and rode out the rest of my payments almost 30 days late. I did not reaffirm and they did not repo. I had 4 payments left when I filed BK so there was no negative equity at that point. They would have profited if they had repo'd. Maybe they didn't because they would have had to file to lift the stay. Maybe that would have cost more than the 1200.00 I owed when I filed. Who knows.

I made my payments through my BofA account and they went through without a hitch. I didn't use any special address for my payments, just the one that is the default address for BofA. I'd almost bet those went through on an ACH.

[manglicmot]

I didn't reaffirm my Ford loan, but my case only closed a couple of weeks ago. My attorney specifically told me as long as I'm current, I'm OK. However, I never verified it myself by looking up the specific California law that covers it. If they repo it, no big whup, I'll buy another. I get two or three letters in the mail every day from car dealers who want to sell me car with a loan to people like me who have "less than perfect credit".

I called Ford Credit after I filed to ask for the payment address. They gave me an address in Pasadena to mail payments. The person on the phone also told me that I would have to reaffirm to keep the car. I kept my mouth shut because I knew that I did not want to reaffirm. My loan is a 0% loan, I hope that I get to keep it.

[CPO]

Well, they lied to you CPO, but I may have been the exception to the rule. I was almost 30 days late when I filed and rode out the rest of my payments almost 30 days late. I did not reaffirm and they did not repo. I had 4 payments left when I filed BK so there was no negative equity at that point. They would have profited if they had repo'd. Maybe they didn't because they would have had to file to lift the stay. Maybe that would have cost more than the 1200.00 I owed when I filed. Who knows.

I made my payments through my BofA account and they went through without a hitch. I didn't use any special address for my payments, just the one that is the default address for BofA. I'd almost bet those went through on an ACH.

Thanks Granny,

Not suprised they would lie. I've not researched yet as to whether we are protected under state law (Texas) if we are current on our payments.

That would prevent repo's but Ford is not going to tell you that.

I'll get to it.

CPO

[lrprn]

Not suprised they would lie. I've not researched yet as to whether we are protected under state law (Texas) if we are current on our payments.

We have Ford cars all inside our Ch 13 plan. We were up to date on all our payments when we filed.

All I can tell you is on our lawyer's advice we didn't reaffirm. After being in Ch 13 for over a year, all our cars are still sitting in the driveway

CPO, if you find an online resource for which states don't allow repossession if you are current on payments, please post it here. Will do some searching myself later and do the same.

[JRScott]

Bad news.

Your not protected in Texas

http://www.bankruptcytx.com/chapter7.htm

Relevent part, I bolded the really pertinent part:

However, a debtor wishing to retain property that is collateral for a creditors, (i.e. cars and homes) may “reaffirm” the debt or redeem the property. A reaffirmation agreement between the debtor and the creditor creates a new contract between the respective parties where the debtor promises to pay all or a portion of the money owed. The reaffirmation agreement causes the debtor to once again become personally liable to the secured creditor. The reaffirmed debt will survive the discharge. In return, the creditor promises as long as payments are made, the creditor will not repossess the automobile or other property. If the debtor defaults on the payments, the creditor may repossess and sell the collateral. And if the sale price is not enough to satisfy the debt, the debtor will the creditor any deficiency. Note that Texas, unlike California, does not permit a debtor to allow the secured creditor’s lien to simply “ride through” the bankruptcy process absent reaffirmation or redemption. Johnson v. Sun Fin. Co. (In re Johnson), 89 F.3d 249 (5th Cir. 1996) (per curiam) (no retention of collateral without reaffirmation or redemption).

Here's another link Texans might find useful:

http://www.tlsc.org/lhot%20pubs/Bankruptcy.pdf

[EZDUZIT449]

the post above in reguards to calif BK not having to reaffirm is incorrect. The reference is from 1996. Since 2005 law changes all secured property kept has to be reaffirmed in Calif.

[CindyLou]

I filed under old law in oct 2005 and did the ride through with Ford.....in CA. I was under the impression, however, that even under the new BK law, that because of he the CA law that ride through was still possible in CA.....especially with Ford.....anybody doing a ridethrough on CA on new law???

[lrprn]

Even though the new bk law states that all debts must be reaffirmed, redeemed, or surrendered, what is happening in practice is that the majority of car lenders are not repossessing the car as long as the filer continues to make payments on time. Why, you may ask?

Because repossessing a car costs money, and added to the costs of putting the car up for auction or back out on the lot may not get them anything close to what they will get if they just allow you to keep making on-time payments on the original loan. They will end up getting every penny of their money back even if you don't reaffirm. This is especially true if the car was purchased less than 910 days ago when you file and is upside down (the loan owed is more than the car is worth).

It's a no-brainer that it makes more sense to just keep letting you make the payments as long as the payments keep coming on time. Why repossess a car just because they can if they will lose money if they do it?

The one exception - when you own a car that is worth a significant amount more than you owe on it. Then because the lender could possibly get more than you owe if they repossess, in that situation, you should definitely reaffirm.

[EZDUZIT449]

if you do not reaffirm with the BK it automaicly goes on your credit as included in the bankruptcy, whether the finance co. takes back the vehicle or not, you are going to need for this to show you are making payments, not included in the bankruptcy,,, and it will never show up on your credit reports correctly. You are going to need this to show not included on your bankruptcy for future credit in making payments on time. Unless all you care about is keeping the car and screw what your credit report shows. BK should be helping to clean the mess up not compound it.

[JRScott]

the post above in reguards to calif BK not having to reaffirm is incorrect. The reference is from 1996. Since 2005 law changes all secured property kept has to be reaffirmed in Calif.

It is from an active lawyers site and seems to be what still applies. I believe California is still allowing ride through based on state law not federal law. Texas doesn't seem to have a state law protecting its citizens

[BKTango]

if you do not reaffirm with the BK it automaicly goes on your credit as included in the bankruptcy, whether the finance co. takes back the vehicle or not, you are going to need for this to show you are making payments, not included in the bankruptcy,,, and it will never show up on your credit reports correctly. You are going to need this to show not included on your bankruptcy for future credit in making payments on time. Unless all you care about is keeping the car and screw what your credit report shows. BK should be helping to clean the mess up not compound it.

Whether you reaffirm it or not, it shows as IIB. Only difference is, if it was reaffirmed it still shows you making payments, if you didn't...it doesn't show payments being made obviously. Also there have been several folks that reaffirmed and it still didn't show they were making payments.


Also to note...I am sitting in Texas and didn't reaffirm, due to the stupidity of the lender's arttornies not filing the paperwork. I was told by the lender, our attorney, the trustee, and the clerk of the court. We would be fine as long as we kept up the payments. I have found several sites online that stated the same as I was told, unfortunately since I no longer needed the info I didn't keep the sites bookmarked. This is the first I am seeing that Texas doesn't allow ride throughs and the legal folks in my town seem to think otherwise.

[wrktwoliv]

didn't reaffirm with Ford either

I ended up not reaffirming at 0% loan with Ford. They sent the paperwork so late, their local attorney didn't get the paper work to me until 1 week before my discharge. I wrote on the contract that I wanted it reported has current and IIB on my credit report so the local attorney sat on it. Bottom line my case discharged and closed and no agreement.

I called Ford, they were abit surprised that the attorney didn't file it. But told me I was fine and they would let me keep the truck but if I was more than 30 days late they could take the vehicle. I told the attorney if he wanted to pay the 300.00 to reopen my case to file the reaffirmation agreement go ahead. But I've heard in my district the judges do not like reopening bankruptcies just to file reaffirmation agreements.

[JRScott]

Whether you reaffirm it or not, it shows as IIB. Only difference is, if it was reaffirmed it still shows you making payments, if you didn't...it doesn't show payments being made obviously. Also there have been several folks that reaffirmed and it still didn't show they were making payments.


Also to note...I am sitting in Texas and didn't reaffirm, due to the stupidity of the lender's arttornies not filing the paperwork. I was told by the lender, our attorney, the trustee, and the clerk of the court. We would be fine as long as we kept up the payments. I have found several sites online that stated the same as I was told, unfortunately since I no longer needed the info I didn't keep the sites bookmarked. This is the first I am seeing that Texas doesn't allow ride throughs and the legal folks in my town seem to think otherwise.

They could be unofficially allowing them. I didn't find anything yet. If your lawyer says its okay and the trustee says its okay its probably okay

[whatamess]

Since my lawyer wont sign our reaffirm, he told us that Toyota was 50/50 on ride throughs. He did say, be glad you dont have a Ford, because they will come take the car no matter what, 95% chance!!
Im very worried Toyota will repo despite current payments
because they will make money on repo and we will be out $16,000!! Toyota resale is very high. We put a huge (from accident settlement) downpayment on it.
Its our only car too. And we have no money or way to buy another. Where we live its impossible to walk anywhere and no public transport.

WAM