Question Reaffirmation for Car loan?

[Trudy]

Hi Everyone,

I have been reading the forum for several months and some of the advise I've taken has been very helpful, so thanks a bunch!

I filed C7 pro se (in NJ) and so far, things have gone well. Today we received a Discharge of Debtor Notice that said "It appears that the debtor is entitled to a discharge" and "IT IS ORDERED: The debtor is granted a discharge under section 727of title 11 United States Code (The Bankruptcy Code).

Is it ok to feel good about that?

My next hurdle is the Reaffirmation Agreement for my Car Loan. According to the posts on the forum, the Trustee pretty much never allows it. Are there any cases where it is allowed? I've only had my car for a year, I am behind one payment because I am afraid to make the payment if I'm going to lose my car. I can make the payment on the spot if necessary, but how does the court justify denying a person their transportation to get to work so they can earn money so they government doesn't have to support them?

I called the loan company to see what their thoughts on it were but the man I spoke to adamantly let me know he could NOT give me any information that would help me. So now I'm dreading the outcome.

If anyone has any insight on the reaffirmation process, I would be very appreciative if you would share it.

Thanks for being here.
Dory

[df04527]

I might be a little confused -- you received your discharge but never did the reaffirmation? When did you file?

[Trudy]

I might be a little confused -- you received your discharge but never did the reaffirmation? When did you file?

Received Discharge Letter today; attending Reaffirmation hearing on March 28. Should I, too, be confused. I have no experience at this and I am apparently my own lawyer.

[LadyInTheRed]

Today we received a Discharge of Debtor Notice that said "It appears that the debtor is entitled to a discharge" and "IT IS ORDERED: The debtor is granted a discharge under section 727of title 11 United States Code (The Bankruptcy Code).

Is it ok to feel good about that?

Yes, feel good. You've been discharged. Congratulations!

Based on my reading of Bankruptcy Code Section 524(c), you have to reaffirm before discharge.

(c) An agreement between a holder of a claim and the debtor, the consideration for which, in whole or in part, is based on a debt that is dischargeable in a case under this title is enforceable only to any extent enforceable under applicable nonbankruptcy law, whether or not discharge of such debt is waived, only if—
(1) such agreement was made before the granting of the discharge under section 727, 1141, 1228, or 1328 of this title

It goes on. You can read the entire thing at http://www.law.cornell.edu/uscode/us...4----000-.html

Whether the lender can reposses the car after discharge even if you make payments depends on state law. One way to be certain they will reposess it is to not make payments.

[LadyInTheRed]

Received Discharge Letter today; attending Reaffirmation hearing on March 28. Should I, too, be confused. I have no experience at this and I am apparently my own lawyer.

So, you already signed the reaffirmation agreement? That would make sense. The code doesn't say that the reaffirmation has to be approved by the court before discharge.

ETA: The reason the court (not the trustee) has to approve it if you are not represented by an attorney is to make sure you understand your rights and are not being pressured by the lender into an agreement you cannot afford and to make sure it really is in your best interests to reaffirm.

[Trudy]

Thank you all for responding to my question. I'm still holding my breath but I will make that payment I owe. If I lose it, I just have to deal with it. This is so stressful. My husband hasn't worked in 3 yrs and things are getting hairy. But I know you all know what I mean. The economy has gotten to every one I know in one way or another. Your shared wisdom is greatly appreciated.