Vehicle discharged by mistake...

[CurtInKS]

Got my discharge letter today, but CitiFinancial called, and said my car was discharged, when it was supposed to be re-affirmed. They say the balance due is $0.00 and they won't send me statements. Do I just keep sending a check every month? I don't even know how much I have to pay to pay it off. Anyone have any ideas????

[magyar123]

Well, if the loan was (even accidentally) discharged and Citi acknowledges that it was discharged - it is. Be happy, be glad.

[bkchap7filer]

What do you mean by "it was supposed to be reaffirmed?"

Does that mean you indicated on your forms that you wanted to reaffirm it?

Did you sign the reaffirmation agreement from your creditor and return it?

Do you see on PACER that your reaffirmation agreement was received by the court?

Just trying to understand what may have happened in your case.

[Doghouse]

But you don't own the car until you get a pink slip. Right? So, how can you sell the car in the future if wanted you wanted to?

[optimistic1]

Until you get the Title, I would atleast call them before you just stop paying.

Heck, just try calling them and asking them where is the title.

[keepmine]

You'll need to contact their bk dept, and ask how to handle payments.

[TEW]

Got my discharge letter today, but CitiFinancial called, and said my car was discharged, when it was supposed to be re-affirmed. They say the balance due is $0.00 and they won't send me statements. Do I just keep sending a check every month? I don't even know how much I have to pay to pay it off. Anyone have any ideas????

Yup just keep sending the payment you did a ride through and that's a good thing. they will most likely turn your online banking back on if not set it up so you can see what you owe. they may send you informational notices about how much is left to pay off the loan. but it will say this is not a bill. Now if you get sick of the car or it starts giveing you trouble you can call then and tell them to come get it. you are done.....

[CurtInKS]

Thanks for the responses everyone. Here's a little more specifics. we did indicate on our paperwork we wanted to re-affirm our vehicle loan. We never got a re-affirmation agreement, which my attorney said is not unusual. Haven't signed up for PACER so not sure there.

Spoke to my attorney today(it was a miracle!). He said we could apply to have it changed(renew?) but he said not to. He also said according to Bankruptcy code, it's illegal for a creditor to continue to accept payment on a discharged debt. He also said if they are willing to do it, then you sort of accept a new agreement, so you can't just change your mind, and stop paying or I could get in trouble(didn't say what kind of trouble). He said to keep paying, and request a letter of balance, and just do the bookkeeping myself.

The car is used and a lot of miles, with a $500 a month payment. I am giving serious thought to not sending a dime, and just driving it until they take it, and then get another vehicle. Not sure what to do.

[TEW]

Thanks for the responses everyone. Here's a little more specifics. we did indicate on our paperwork we wanted to re-affirm our vehicle loan. We never got a re-affirmation agreement, which my attorney said is not unusual. Haven't signed up for PACER so not sure there.

Spoke to my attorney today(it was a miracle!). He said we could apply to have it changed(renew?) but he said not to. He also said according to Bankruptcy code, it's illegal for a creditor to continue to accept payment on a discharged debt. He also said if they are willing to do it, then you sort of accept a new agreement, so you can't just change your mind, and stop paying or I could get in trouble(didn't say what kind of trouble). He said to keep paying, and request a letter of balance, and just do the bookkeeping myself.

The car is used and a lot of miles, with a $500 a month payment. I am giving serious thought to not sending a dime, and just driving it until they take it, and then get another vehicle. Not sure what to do.

The good thing is you have those options

[CurtInKS]

Do you think I could negotiate a buy out of the Blazer? I got to thinking, since the debt was discharged, if I surrendered it, the best Citi could get is auction value. Do you think I could negotiate to only pay that amount?

[Tbornetun]

Nothing could really hurt at this point. I have never heard of anyone doing that though. Call them and find out.

[BnkrptcyLwyr]

It's going to depend.

Certain Judicial Circuits maintain the "ride through" option. Others do not - you must either reaffirm, redeem, or surrender.

The PRACTICAL thing is that even IF you are not a ride through Circuit that you can just keep paying so long as you're making the payments.

Having said that, typically every retail installment contract contains a clause saying that filing bankruptcy is a default and the creditor TECHNICALLY can declare a default and repossess the vehicle. Some creditors will repossess! Others do not. It depends. Generally, so long as you are current on your payments, a creditor will not repossess - but when it comes to cars, they sometimes do. In my experience, they NEVER do so for houses - the mortgagees always want you to stay in the house and keep paying.

[CurtInKS]

Well, I'm going to give it a shot. I owed around $15,000 on the Blazer. Auction value is about $9,500.00(per manager at the lot where I bought it). My inlaws said they'd loan us the money. I think tomorrow I'll call them, and see if we can settle the debt for the $9,500.00

[TEW]

Well, I'm going to give it a shot. I owed around $15,000 on the Blazer. Auction value is about $9,500.00(per manager at the lot where I bought it). My inlaws said they'd loan us the money. I think tomorrow I'll call them, and see if we can settle the debt for the $9,500.00

What options are you going to give them take the money or the car?
And if they say no are you going to just keep paying?

[CurtInKS]

Yeah, if they say they won't do it, I will just keep making my car payment, I guess. I did request a letter from them, with the amount owed, and agreeing to allow us to have the title, once that amount is paid. I told them, I'd resume sending payments, once I got that. I hate to think I would make all those payments, and then they just take it anyway. My attorney said he's seen it happen.