Reaffirmation Agreement - Auto Loan

[limonrod]

Hello all!

My husband has filed Chapter 7, solo, pro se. He filed on 9/27, 341 meeting is on 11/8.

He is reaffirming his auto loan, as his truck is worth more than the lien on it, and the truck should be paid off in another 5 - 6 months. The truck's equity/value is exempt.

The loan is with Suntrust Bank and all payments are and have been current.

Should we reach out to Suntrust for a Reaffirmation Agreement? We haven't received anything from them, but I think it would be beneficial for us for the Reaffirmation Agreement to be entered into as soon as possible since we have such few payment left.

I wouldn't want the lack of receiving a Reaffirmation Agreement to delay the closing of his case. He is a no assets case.

What do you think?

[AngelinaCat]

Normally we (the Forum members) do not recommend reaffirming an auto loan, but in your case with only 5-6 months to go on the loan, it will not hurt. Talk to the BK department of Suntrust Bank and see what they say, but they may tell you not to worry about it, with so little time left.

The lack of a Reaffirmation agreement will not in any way affect your Discharge or Close.

[limonrod]

Thank you for your response AngelinaCat! Ironically we received in the mail (on Friday) a generic letter from Suntrust notifying us that they were aware of the BK, etc., so I expect that they will send a Reaffirmation Agreement soon (hopefully).

[AngelinaCat]

With only a few months to go, they may not bother to send an agreement. If you have good payment history, they probably won't. Just be aware that you don't have to sign it.

Now if this was American General aka Springleaf Financial, my advice would be totally different....

[justbroke]

You may not need to file a reaffirmation agreement, especially since you are almost paid off. I would not recommend reaffirmation unless it's a company like Ford Motor Credit where the creditor is adamant that you reaffirm, redeem or surrender.

I have never read where SunTrust requires reaffirmation. In fact, because you have fewer than 11 payments remaining, a smart lender would not go through the cost of filing a reaffirmation agreement. (When I say "smart", I don't mean credit unions and small (regional) banks.)

[limonrod]

Great then! I'd hate for hubs to have to attend a hearing for the Reaffirmation if we can avoid it, since he already has to take the entire day off from work to attend the 341 meeting because of our distance from the Courthouse. If they don't push it then neither will we! :-)