getting worried 2 weeks before 341

[blaze]

i am SO confused. we filed bk7 in feb - have our hearing in a couple of weeks. we are current on our house and it has no equity - current on the car - has negative equity. we planned to reaffirm both - the car is reliable and we figure eventually we'll get on the right side of the loan - and the house will eventually gain equity - we love our schools and neighborhood and really do not want to move. Right now we finally have steady, good income to pay both and still live..But I am reading here maybe we should not reaffirm - I don't understand how we could not reaffirm - keep making payments and not fear foreclosure constantly - and now I read that sometimes mortgage companies will not let you reaffirm? has this ever happened to anyone? I am also worried b/c our attny has not asked up to give him anything to give to trustees before the mtg. except last 6 months pay stubs and last years tax return. we are suppposed to bring bank statements to the hearing. Is this normal? It seems like they'd need to see that ahead of time but maybe not?

[gophermn]

I had my 341 last week today and I did reaffirm the house and car. I think it's a personal choice what you should keep and what you should not. I personally love our neighborhood and will have equity in 2 years when I am close to selling or refinancing to a lower rate.
At this day in age if you are current with the car/house payments than I think you should be fine. Right now (in todays market) the LAST thing they want is another house or car for the auction block.
Just stick with the process and keep making the payments.

Good luck!

[PaKettle]

I think if I had a HOUSE, I would reaffirm it. With a car it is less risk and I was advised not to reaffirm, but just keep making payments. It is not in their best interest to repossess a car that you are paying on. As to houses, I'm not so sure. Since a house is such a big important thing, I would want to reaffirm on it. What does your attorney say about this?

I think a lot of attorneys aren't very thorough in their handling of cases and it's pretty much up to you to ask questions and make sure things get done right. That's why it's good to be a member and reader of this forum!

I would call and ask your attorney the question you have about reaffirming.

If you are upside down on your car I would certainly not reaffirm it and in fact I wonder if a cram-down is possible, allowing you to pay off only the real value of the car, not what you owe? Someone said this is only done in a Ch. 13 but I thought it could sometimes be done in a Ch. 7. No?

Anyway, I'd ask your attorney about these things.

If you can't do a cram down on your car to only pay what it's worth, then why reaffirm it? Why keep it at all? Why not let them take it and you buy something that you can better afford and that is worth what you pay for it?

By the way, I remind you and others that you should make sure your petition is accurate before your 341. If you do not have a copy, download one from pacer and go over it to make sure there are no errors, and to make sure the Clerks Office (the people who file it electronically up to Pacer) have all the pages they should have!