Can they repo with no warning?

[Samhill]

I have a work truck that I'm financing through Wells Fargo. I listed it as reaffirming it on my petition and was current at the time of filing. I had my 341 back in July and am still current on the payments and in the 60 day club. I haven't received any correspondence from WF, like paperwork on the reaffirmation. From what I've been reading, I get the impression that without a reaffirmation agreement, they can take the vehicle whenever they want. Is this correct? Should I worry about them taking the vehicle or will I get some kind of notice?

I'd hate to walk out to my driveway one morning and see it - and my tools - all gone.

[AngelinaCatHub]

If you are current with your payments and have a good payment record, they would be breaching your contract and you could get your truck back. They don't want your truck and if you are current they should be happy with your money. Simple answer is no.

Also they would breach your automatic stay which you have until your discharge. Don't reaffirm, just pay through. If you feel better reaffirming that is your choice, but it has to be approved by the Judge. 'Hub

[Samhill]

Thanks, Hub. I'm hoping I won't have to reaffirm, but if I'm backed into a corner, I probably would. I need the vehicle for my work (not that there's much of it) and the payments aren't a lot. There's zero equity in the vehicle, and I've been late a few times in the past 3 years, but no more than 30 days.

[Charlie777]

Be careful about the question of contract breach. Some lenders (Ford Credit and Toyota Credit for example) make filing BK a breach. That's how they are able to demand reaffirmation and refuse drive-through in some (but not all) BK courts.

Because you're concerned, this is the time to review the issue with your lawyer and possibly ask the lender whether they require reaffirmation. Once your case is discharged you will have to reopen it (if the court even allows) to reaffirm. My personal experience was that Toyota Credit claimed they weren't notified (even though their address from my credit report was on the matrix), if your lender is incompetent like that (I suspect many are) then you could find yourself in a corner.

[malf1204]

I agree with the above post. Check your financing contract. I have always seen a clause which says that filing Bankruptcy places you in default of the contract and they can repossess after the stay is lifted. You are under the automatic stay unless they file a motion to lift the stay. Once your BK is discharged they can repossess at anytime. Some lenders will left you pay and retain your vehicle others will not. There was a recent case here in Maryland Maureen Roberson V Ford Motor Credit in which Ford repossesed her car even though she had never been late on a payment and the Court ruled that it was legal. My car loan is through Ally(GMAC). I signed a reaffirmation agreement and then went to court and asked the judge to deny it. He did and issued an order prohibiting Ally from reposession as long as I made the payments and had valid insuarnce. Call WF and ask for Reaffirmation agreement.