Reaffirmation Question

[yburgin]

Hi everyone, First time posting, but everything I have read has been really helpfull so thank!

Heres is my question,
I filed Cpt 7 on 4-17-07, had my meeting on 5-23-07 and am awaiting discharge. I have intentions of reaffirming my car, and my loan is thru Roadloans. I pulled my credit report over the weekend with intentions of getting some post bankruptcy groundwork done and noticed that my car is showing that it was "included in bankruptcy" and I have a zero balance. I have NOT signed the reaff yet.
I called Roadloans today to be sure that they had sent the reaff to my lawyer, whcih they had, and questioned why it was reporting this way. She told me that it will until I sign the reaff and they get it back. I asked her what happened if I did not sign it. She told me that I could keep the car even if I did not sign and return the reaffirmation agreement, but if I got begind on my payments, which I neber have, they would repo it.

So my question is, why WOULD I sign the reaffirmation agreement? If the car is showing a zero balance, and that it was included in the bankruptcy, wouldn't it make more sense to not sign it, wait for my discharge, then take my 650 credit score (as of today) and get a newer car with a lower than 16% interest rate, then let Roadloans come and get my car?
It sounds like a crazy loophole that ios too good to be true.

Thoughts? Thanks for your help!

[ProSefromCA]

I'm reading up a lot since I'm filing with no lawyer, and I understand some things better than others. I'm doing little more than guessing for your question, but this is the way I think it works...

Since Roadloans has a secured interest in your vehicle (lien) they can repo it to sell and get whatever money then can out of it. That would be their only choice since they legally can't go after you for the money. By reaffirming a debt the creditor gets the same rights as they had before the filing, so Roadloans would be able to repo the car AND try to collect any debt you owe them. The reason to reaffirm would be if you want to keep the car, so you want to stay on Roadloan's good side. They agree to let you continue making payments as usual and not repo the car. If you miss a payment, they don't panic immediately because they still have legal right to try and collect from you. They gently remind you to catch up or risk them reposessing the car.

If you DON'T want to keep the car don't reaffirm that debt. Let the car get repo'd. And you are on your own to get another car.

[jal1129]

The only reason to sign the reaffirmation is if you want to keep the car. If you don't want it, don't sign the papers.

[familyof7]

I am keeping my van but not reaffirming because if we decide we dont want it we can give it up and owe nothing but if we want it we can keep paying as agreed and pay it off I dont recomend reaffirming the debt because if you pay it you keep it if it does get repoed it wont be nothing owed

[keepmine]

Are you upside down in the loan? If so, don't reaffirm. You can ditch the car anytime you please with no liability for a deficiency balance.