Car exemption?

[alltappedout]

Hi
I'm in California and a bank officer at my credit union (very down on BK) said I would have to reaffirm my car loan in order to keep my car.

I just got the loan modified to payments of $110/month for two years; owe $2526, and car is worth $4700 (kelley blue book).

Anyone have experience or knowledge of this process?

Thanks
Ali

[justbroke]

It's not so much your banker, but Credit Unions are tough when it comes to reaffirmations. Reaffirmations needs to be in your BEST interest and since you filed pro se you need to have the Judge review it.

The Credit Union should send you the paperwork. If they haven't done this, ask them to send it over. This is because it needs to be done before discharge and I believe it's supposed to be in within so many days of the 341 Meeting as well.

Because the car is worth more than you owe... it is probably in your best interest to keep it, unless it's falling apart, but with it's value...

You will need to read the reaffirmation agreement and make sure the terms are not changing and that the interest and everything look okay. Generally speaking, re-affirmations don't modify any terms you already have. If it's good, file the Reaffirmation with the Court and then schedule a hearing (or the Clerk will schedule one).

[alltappedout]

Car exemption continued

Thanks, justbroke.
I have not yet filed, and don't know all that I'll have to do. So maybe my question is premature -- haven't gotten there yet. Your answers are certainly over my head right now.

I'm reading the NOLO book, and will order the BK for dummies that someone recommended. I'll need to find out if Northern CA district (Santa Rosa) has a help desk -- I think so.

From what I can tell with CA section 2 exemptions I would get $3,300 vehicle exemption, plus a wildcard of $1,100.

I have lots more questions but will focus on this right now.

Ali

[justbroke]

Actually, under System 2, you have another $20,000 or so in the unused homestead exemption (if you don't have a residence).

Just make sure you are well versed with everything in the NoLo book before you go run out filing prematurely! Ask as many questions as you like here. There are some great people here (including the mods like AngelinaCat, lrprn, BassBoy, and HHM).

[alltappedout]

Now, that's good news! Are you familiar with CA BK?

I can see that this is not going to be something I get done in a hurry. I have been visiting lots and plan to ask lots of questions. See you around.

Ali

[justbroke]

Now, that's good news! Are you familiar with CA BK?

I would say no, as I'm from Florida. I don't have direct experience, but seem to live vicariously through all the other California Filers. We have people like dingdong (a pro se filer), Albacore, and others all from California (and many from the IE).

[alltappedout]

Sorry, whats the IE?

Ali

[justbroke]

Sorry, whats the IE?

Inland Empire.

[alltappedout]

Okay.

Ali

[MrSmithster]

my car is worth $4500 and i got to keep it. i used system 2 for the 20k exemption, but my car is paid off. i filed Pro Se in so cal but all my debt was unsecured.

[CH33 Paralegal]

Most credit unions cross collateralize their loans to people. If you have loans through them, or anything else, you'll run the risk of them either denying to reaffirm the car in order to recoup something for the other debts or you run the risk of them say that if you want to keep the car you have to pay the other unsecured debt off that you have with that credit union.

[alltappedout]

cross-collaterialization

Thanks for this info...nothing is as simple as it seems at first glance.
Do you think that would include a Visa card through them?

Ali

[alltappedout]

exemption and reaffirmation

If the car is exempt, and I don't request re affirmation, would the balance of the loan be discharged? Is it up to the credit union to allow re affirmation of the car loan?

All my debt except the car, is unsecured.

Not sure I am asking the right questions, but will welcome clarification, if possible.

Thanks!

Ali