Who's had the Car repossesed while still making payments after DC?

[Beach Bum]

We have 2 cars through Chrysler financial and our attorney is very hesitant about signing the reaffirmations due to our negative budget.

The say we could roll the dice and keep making the payments w/o the reaffirmation and hope they don't repo them, but that's kind of an annoying risk, waking up one morning with no car in the driveway.

Just wanted to know if anyone's had experiance with this?

I don't mind letting my car go as much as my wife. She's really attached to her car. I just hate the whole car buying process, especially now that we have the BK hurdle to jump over.

[magyar123]

Don't officially reaffirm, just make on-time payments. Without a reaffirmation agreement you will not be held liable if and when you ever want to get of the car, but make sure your monthly payment gets to the creditor on time. If it is not they can reposess it.

[jal1129]

When I first joined the forum there were several people posting about thier cars being repo'd and they had'nt reaffirmed. If you don't reaffirm if you are even one day late they can come and get it. I would say you would be more in danger of this happening if you have equity in the cars, as long as you were upside down they probably would'nt bother you. There have also been stories of people getting down to the last payment and then getting the car repo'd.

[manglicmot]

I'm attempting a ride-through right now on my attorney's advice. My case isn't closed yet, and Ford Credit may try to force a reaffirmation as is their legal right under the new law. The paralegal who did my initial consultation told me as long as my payments are current, I'm fine.

I have heard of one person on this board getting their car repoed but it was because of a lack of communication with the lender who moved thier account to another lender.

I have never heard of anyone getting to their last payment and then getting their car repoed. Somebody please post a link to that, I want to see what the circumstances were.

[BKTango]

Technically even though there is no ride-through left in the bankruptcy code, a creditor still is bound by state law. That means in your state if you continue to make payments on items (car, home,etc.) do they have the right to take that item? Some states it is not legal for them to do so and in some states it is. You have to read your state laws really to find that answer. Generally speaking most lawyers would only like you to reaffirm if you just purchased a car and are locked into a very good rate (as you won't be getting one due to the bk), you owe very little on your loan or your state allows the creditor to repossess even when payments are made. Those are just about the only reasons you would want to reaffirm a vehicle Most vehicles depreciate in value greatly and you really have to ask yourself how much is your car really worth and how much do you owe? You wouldn't want to be locked into a loan on a vehicle that is worth $6,500 and you still owe $12,500 because should anything happen in the next year or anytime soon you WILL be responsible for that debt if you reaffirm it. You are the only one that can make the choice for yourself really.

[CPO]

http://www.dealermarkclicks.com/asp/absolutenm/templates/article.asp?articleid=954&zoneid=25

As you can see, it all depends on the laws in your state.

Find out exactly what constitutes "default" in your state for auto financing contracts. It's probably printed on the contract you signed to finance the auto.

Remember, even though the law may stipulate certain conditions, that does not prevent many creditors/collectors from breaking that very same law...and then pleading ignorance in court months later.

Don't delude yourself into thinking that just because an action is against the law, that somehow people/companies/organizations won't do it anyway.

Happens every day and......

...assumes you have the cash to sue them in the first place...

Just understand what your up against.

If they repo your car, it's gone. Your driveway WILL be empty. You may have to walk.

And, your on a long and expensive road to sue the bastards for doing it.

Best Regards.

CPO

P.S. Just for your info, my auto loan contract states specifically that filing for BK is a "default" under the Texas Uniform Commercial Code...so I reaffirm or they repo. Just the way it is.