What the heck is re-affirming vehicle???

[Inthestorm]

Sorry...I've multiple posted, tried to search, had no sleep, scared to death, can't get back to atty. yet, passed means for Ch. 7 but haven't filed. In GA, vehicle exemption is $3,500. I need my truck, worth about 11k or 12k. I owe 6k and am NOT behind on any payments. Will they take it away??? Will I have to start paying for it all over again??? The only other vehicle is a '93 escort, worth prob. less than $1,000.

Other vehicle is box van for construction business, and that would go under tools of trade?

[keepmine]

Reaffirmation means, you agree to the same terms of the auto loan post bk. Meaning, if you default you are reponaible for any deficeincy balance.

Since you have access equity in the vechicle. you may need to negoitate a settlement with the trustee. Most will ket you buyback the equity over year or so.

[Inthestorm]

Meaning I have to pay him what I've already paid into it? Would that be original purchase price or value now that it's depreciated and bumper got crunched?

[lrprn]

Meaning I have to pay him what I've already paid into it? Would that be original purchase price or value now that it's depreciated and bumper got crunched?

No. Reaffirming means that you guarantee you will pay your car lender back the total you owed on the car loan on the day you filed your bankruptcy. The loan simply continues on without changes - same interest rate, same amount owed, same loan terms. The car's condition does not matter for a reaffirmation.

If you reaffirm and before you pay the car off something bad happens (job loss, serious illness and you can't work, car gets totalled, etc), then you are still legally liable to pay whatever is left on the loan.

However, if you do NOT sign a reaffirmation agreement and the same bad thing happens, then you can walk away from the car loan owing nothing.

Did this make reaffirmation and how it affects you clearer? If not, post what isn't clear and we'll keep sharing information until it does make sense.

[Inthestorm]

Yes, it does help. I was totally misunderstanding. So...you have a choice whether you want to sign the reaffirmation or not or can the trustee be stinky and take it away because I have too much equity in it? Someone else on here said I needed to sell it and get a cheaper truck because of my equity in it.

[FreshStart01]

Are you filing on your own or jointly? I'm in Ga. if you're filing jointly that gives you $7000(3500x2)exemption on your vehicles.

[Inthestorm]

Yes, but I think we're still over the limit, which is what confuses me. I have a little gas saver escort that may be worth $1,000, lots of miles. My truck I NEED, but it's worth anywhere from 11k to 15k, depending on what estimator you use. So...it's okay to go over the exemption limit as long as you re-affirm the debt (I owe 6k on the truck)...

Then there's husband's box van, which he CANNOT do business without. Not sure it's value, very high miles. What blows my mind is the $1,500 exemption for "tools of trade" which is insane. There is NO POSSIBLE WAY he can continue working if that is for real. He uses fax, computer, truck and zillions of TOOLS. Yet he tells me the lawyer said it will all be okay. How....? Might be a long wait for lawyer to call back, which is why I'm out of my mind.

[FreshStart01]

You didn't mention if there is a home involved here, if there's not or you're not using your homestead exemption than in GA. you have a $5000 wild card exemption you can use.

[Inthestorm]

Yes, there is a home that we have a big mtg. payment on AND an equity line that we used to try and survive when there was no work. My husband wanted to keep it, but since it's such a big payment I think we should let it go.

[FreshStart01]

I am in the same position,we decided to let the house go in the BK since we owed more than it's worth. If you don't have any equity in your home and you're going to surrender it than you'll be able to use that $5000 wildcard exemption.