New Job, No Discharge, Delay Flags

[MomIcantFindmy]

Now my turn to stress out.

We filed in April and everything is going fine. 341 in May went well. Signed two refirmation agreements in May. Moved out of our house and into a house with our family because it was wayyyy too tight. We thought at the time of the move we might be living with family for an extended period of time. Husband FINALLY gets a job after 5 months of no work. (He is in a technical field that suffered in the down turned economy) Got his first paycheck 2 weeks ago and moved out of our families house and into a house closer to where his new job is. We thought we were going to be discharged last week. Now we find out that the refirmation has a undue hardship flag and we have a Delay on discharge flag. My HUGE concern is that because he makes more than the median income with the new job they will try to convert us to a 13 or dismiss us after all of this if I mention that we can afford it now

I think they believe we can't afford the refirmation (we could when we moved in with family and we can now since the new job). We always believed this was a temporary thing in life and we would be back on our feet, that is why we signed the refirmation. Should we just abandon the refirmation and ride through the car payments (it is only a car and I am not as attached to it as my DH)? or should I ignore all of the flags and they will resolve themselves after a few payments. I will call the attorney Monday but I would like to have some idea of what will happen depending on the route I choose. We have literally mentioned to no one about the new job except family. Will that bite us? I am in month 4 after filing and sooooo stressed out!!

Anyone else have a undue hardship on refirmation and what was the outcome?

[momof5]

The undue hardship is very common if you showed a negative amount after expenses. It usually requires a simple hearing in front of the BK judge who will then determine if reaffirming is in your best interest. Usually it is not BUT that doesnt mean that the creditor will just take your car. It just means that the BK courts have found that it is NOT in your best interest to be reaffirmed which is technically taking the item out of bankruptcy and saying you are legally responisble for it.

Reaffirmitions only benefit, for the most part, the creditor.


We also have an undue hardship but have decided to take that as it is and get rid of this vehicle while we have the chance to do it. We had originally stated our intentions as reaffirming.

[MomIcantFindmy]

So I can cancel the refirmation (I am still before discharge) and this will all just go away? Will the creditor come get the car if I keep making payments (Cap one)? It doesn't seem worth their while. Will it be hard to get the title from the creditor after I am done making payments?

I am still stressed over the increase in income.

[momof5]

If you cancel the reaffirmation then it really depends on who holds your car loan. I am with a Credit Union and they don't deal with non reaffirmations. You either reaffirm or you surrender. So we have to surrender now. (Baffles me thats for sure as they are going to lose thousands)

Many here have been able to continue paying without any troubles at all. I am not sure about titles. Thats a really really good question and I had not thought of that one. Maybe someone else who has finished paying while doing a ride through willl know better how they got the lien released on the title.

As for your income increase. I believe that after your 341 you can make as much as you want. You really dont need to disclose any income as you have already filed and gone through all this. The only reason to disclose new income would be if you were trying to convince the judge to allow a reaffirmation. There are other ways to explain if this is what you really want. No guarantees though. When we originally were going to reaffirm and we got paperwork that our attorney would NOT sign off on.The reaffirmation had a few lines to explain why this would not be an undue hardship. I was thinking we would just say that we are current and its a priority to pay our car payment. The attorney did say that most bk judges wont find that in your best interest even if you are current. This is one of the times when the BK courts are working for you.


You can cancel a reaffirmation up until the time of discharge.

[MomIcantFindmy]

You are awesome! You answered everything! Thank you!!!!!!