Ride-through in Eastern California District

[Twinkle]

I have a car loan, and although I understand that you guys never, ever, suggest to reaffirm a car loan, it is what is best for us. We need the car for me to get to work, we don't have other transportation or public transport, it's a modest car that we got a good deal on. I am okay with paying the car note, as I agreed to when I bought the car. I also thought BK would be a future option (just not this soon), and wanted to secure a vehicle before I had to file BK, since I worry about being able to get a car.

But, obviously, a ride-through would be nice As I understand it, if a judge denies your reaffirmation, you can get a technical ride-through. Is it possible for creditors to agree to a ride-through? I have paid as agreed since getting the car, but have only made about 6 payments.

I don't have the money to redeem it, so that isn't an option.

The loan is through Capitol One, the balance is $14,000, my interest rate is high 12%.

[LadyInTheRed]

Actually, it's a mortgage we say never to reaffirm. With a car loan, it depends on the circumstances.

A commonly discussed strategy is to indicate on your statement of intentions that you intend to reaffirm the loan. Sign the reaffirmation agreement, let the lender file it with the court and then ask the judge not to approve it. You may not even have to ask the judge not to approve as judges tend to disfavor reaffirmation agreements. With that high interest rate, I would think the chances a judge would refuse to approve reaffirmation are even better. Here's an article by a California attorney discussing the strategy: http://www.lacba.org/Files/LAL/Vol35No1/2901.pdf

Have you consulted with a few BK attorneys? Most attorneys give free consultations. Even if you are filing pro se, it's a good idea to do some consultations where you can questions like this answered from somebody familiar with your local court.

[LadyInTheRed]

I meant to say that in the 9th circuit, which includes California, you cannot do a ride through. Here's a summary of the case that confirmed that: http://stjohns.abiworld.org/node/89 To prevent the lender from exercising an ipso facto clause in the loan agreement, you must at least try to reaffirm.

A creditor agreeing to a ride through would basically mean they don't repossess the vehicle if you don't try to reaffirm the loan. You could call your lender and ask what their policy is. Many lenders would prefer to have you pay off the loan than to repossess the car. Some won't even enter into a reaffirmation agreement.

[Twinkle]

Have you consulted with a few BK attorneys? Most attorneys give free consultations. Even if you are filing pro se, it's a good idea to do some consultations where you can questions like this answered from somebody familiar with your local court.

I wanted to get a good handle on the proceedings first before meeting with an attorney so I don't "waste" my free consult

[LadyInTheRed]

I wanted to get a good handle on the proceedings first before meeting with an attorney so I don't "waste" my free consult

Good idea. Plan on consulting with more than one attorney. Some will be more generous with their time than others and you might get differing opinions.