reaffirm? what are the guidelines?

[pink_amulet]

Ok we filed for ch 7 back in Sept, a week later our local car dealer who do their own financing called us and asked us what our plans were about the loan, I verbally told them we will keep it and continue to make the payments. they said ok good!! We have NEVER been late and always pay ahead of time. We still owe about $2300 on it. This was back on October 4th, since then they have not sent us any papers to reaffirm with or sign, and since today was our 341 they didn't show up either (thought they might since they are local). The trustee only verified that was our only vehicle. We made the next payment on the car last Friday.

So here is my question.....IF god forbid something happens to the car and we can't continue to make payments can they sue us for the balance?
I know we said VERBALLY, but legally are we responsible??

Just wondering.....we plan to keep this car as long as it runs but since it is a 94 and our refund won't be taken, we need to get a more reliable car next spring once we are discharged for a couple of months and our credit reports are reporting correctly.

pink_amulet

[bkfiler]

just wondering, is that you in the picture for holloween?

[ODDBALL]

I'm pretty sure that as long as you did not (or do not) reaffirm, that you are protected from them suing you for the balance should something happen. Reaffirming the debt will take that 'cushion' away.

[Minnymouth]

If you re-affirm or redeem it has to be done before discharge!!!

If you reaffirm, more than likely dealer will insist you sign papers stating so..... This way would still be responsible if you turned the car back in later.

If you don't reaffirm, even though you continue to make payments, they can request the vehicle back immediately. They may let you keep it since you continue payment, BUT if you should default on a payment or be late, they can demand the vehicle and make you pay for it in full or what is owed on it.

Usually they will demand return of the vehicle or sign reaffirm papers. One or the other....

Minny

[Minnymouth]

Just a note - if you owe a whole lot on the vehicle you can buy it back cheaply by redeeming it instead of reaffirm. Only thing is "it's cash in hand"...... unless you can get someone like www.722redemption.com to finance it for you.

Might be worth checking out the value of it against what you owe.

Minny

[StaciMM]

If you keep making the payments but do not officially reaffirm, you will not be obligated to it if you change your mind down the road. Just keep in mind that when you're ready to give it up, there is no way to know how aggressive (or not) the lender will be. They could pick it up if you're a day late, for example.