Question about reaffirmation and CC payments

[itcaughtup]

Hi guys, thanks for all the help so far, I have a couple of new questions.

1.) I have been reading here that some people were unable to reaffirm their mortgage agreements because the mortgage co refused to do so. I'm filing ch 7 ( did so on 5/1) and was told I will be able to reaffirm ( I am and have been current to this point)? My mortgage is with countrywide and while I have never had a problem with them, it seems other posters here have had many.
2.) I was also current on ALL of my other debt approx $84,000 in CC debt, . I was using my cards right up until I filed on 5/1 but made payments all the way through. I didn't have any real "luxery" purchases but was using my amex for business travel; however I also made several large payments to them. For example I made around $5,000 in charges last month but sent in apprx 3,500 al before deciding to file ch 7...
I had applied for a loan from cap one with a cosigner for $30,000 to try and "cheapen" my debt but was denied even though my fico was pretty high given how much debt I had, maybe because I never missed a payment EVER, but at the end of the day I was borrowing money every month from my father or whoever to make ends meet and cap one evidently could see that with how much debt I had I was a big risk. After being denied that I figured this was the only way out, does anyone think that because I was using my cards until the end it will be a problem???

[keepmine]

Quite possibly. Why didn't you ask your lawyer that question?

[justplaintired]

Didn't your attorney advice you on this? We were told to stop charging and stop paying and waited for 90+ days to file. We are actually still waiting, now it's the stimulus check we are waiting on.

Anyway, you should call your attorney and find out what he/she says.

[Cali]

I also suggest talking to your attorney.

Our attorney told us to stop paying credit cards, wait 90+ days(we are waiting longer) and to continue paying on house/cars if we wanted to keep them.

[itcaughtup]

The reason I had to file in a hurry is I am very close to the max on the means test, I have recently started to make more money at my current job and would have gone above the median income for my state if i had too many more pay checks. If i wanted this to be a option I had to do it sooner than later, while I fully plan to ask my attorney, he's not available at 10 pm, hence why I am asking what you fine folks think would be the case based on your experiences and dealings of your own.. Thanks again

[downwardspiral]

I've met with two attorneys, and both told me that if I used my credit cards to pay for living expenses and paid my bill on time, then I shouldn't have a problem filing. The only card I used was my AMEX. I haven't used it since March 31. During the first week of May I made my last payment to Amex.

Both attorneys I met with said that it shouldn't be a problem, since it is evident I used it for daily living expenses and not any luxury items. Plus making a payment proved I wasn't trying to commit fraud.

I personally could not handle waiting 90 days to file and not paying my credit cards. The creditor calls would rack my nerves.

Good luck.

[itcaughtup]

I've met with two attorneys, and both told me that if I used my credit cards to pay for living expenses and paid my bill on time, then I shouldn't have a problem filing. The only card I used was my AMEX. I haven't used it since March 31. During the first week of May I made my last payment to Amex.

Both attorneys I met with said that it shouldn't be a problem, since it is evident I used it for daily living expenses and not any luxury items. Plus making a payment proved I wasn't trying to commit fraud.

I personally could not handle waiting 90 days to file and not paying my credit cards. The creditor calls would rack my nerves.

Good luck.

Thank you for the input, it seems from what I read here that AMEX is the toughest on those who file..

[jmk424]

Countrywide

itcaughtup,

Just wanted to chime in on reaffirming with Countrywide. When my husband and I filed bk our attorney told us that we would need to reaffirm in order to keep our house and car. I called Countrywide to have them send the reaffirmation papers to my attorney and they told me that since they allowed me to continue paying my mortgage during bk and since I was current with my payments they would not reaffirm. I was concerned at first, but after I talked to my attorney I was fine. He told me that the reaffirmation benefits the lender not us, so as long as we stay current on our payments we should not have any problems.

Good luck!

[itcaughtup]

itcaughtup,

Just wanted to chime in on reaffirming with Countrywide. When my husband and I filed bk our attorney told us that we would need to reaffirm in order to keep our house and car. I called Countrywide to have them send the reaffirmation papers to my attorney and they told me that since they allowed me to continue paying my mortgage during bk and since I was current with my payments they would not reaffirm. I was concerned at first, but after I talked to my attorney I was fine. He told me that the reaffirmation benefits the lender not us, so as long as we stay current on our payments we should not have any problems.

Good luck!

Ok, I'm hoping my situation goes the same way, thanks..

[itcaughtup]

anyone else???

[totallyconfused]

I have my mortgage with Countrywide and I called them today to see if we could reaffirm and they said we could not since we bought our home with a 100% loan and due to the housing market it has lost value and we own more than it is worth. We are current on our loan. If anyone knows a way to get them to let me reaffirm please let me know.

[lrprn]

I have my mortgage with Countrywide and I called them today to see if we could reaffirm and they said we could not since we bought our home with a 100% loan and due to the housing market it has lost value and we own more than it is worth. We are current on our loan. If anyone knows a way to get them to let me reaffirm please let me know.

Why do you want to reaffirm a house that you are upside down on? If you continue to make your house payments on time, Countrywide will be happy to take your money and do nothing.

Reaffirmations are voluntary all around - you can't be forced to sign one and your lender doesn't have to agree to sign one either. And frankly in this situation, it's to your benefit to NOT reaffirm on a home that you owe more on than it's worth.

What does your lawyer have to say about this situation?

[itcaughtup]

My Situation is similar with country wide, I too did %100 financing and currently I am about even with what it's worth and what I owe. If country wide decides to not reaffirm but I stay current, can they at some point force me sell or foreclose due the BK? Am I also led to believe that I can live there for the next several years as long as I keep paying, what happens when I want to sell? this is certainly difficult...

[Cali]

ITA with lrprn on this!!

[laurannm]

I 2nd the opinion of lrprn. Reaffirming offers zero benefit to you, and all the benefit to the lender.

As I understand it, if you do not reaffirm you should still have no problems selling down the road. If you happen to have equity when you sell then the equity is your to keep. Not sure though if you are still upside down and you sell? Are you still responsible for the difference if it was IIB?