Fighting with the bank...complicated, HELP!

[Antha]

My husband and I had our bankruptcy discharged in November of 2004. We had chosen to reaffirm the car loan, continuing to make payments on it so that we could build back our credit. On pretty much EVERY page of the bankruptcy papers, it shows that we chose to reaffirm that debt and that it would NOT be included in the bankruptcy. We also have a paper in there specifically about the car loan and reaffirming the debt, which both of us signed and the paper was filed through the court.

Well, a month or two ago, we checked our credit report online and come to find out, it says that the car was included in the bankruptcy. We have continued to pay our payments and never missed one. Today, we went down to the bank (I won't say their name, since I don't think that's allowed) and told them the situation: we want to continue paying on the car (we have another 2 years on the loan to go), but we want our payments to go on our credit report, retroactively and presently. At that time, we didn't have our bankruptcy documents with us and hadn't looked at them in awhile. Anyway, the guy said that they could do nothing about our past or future payments, that we would have to continue paying (and basically dumping our money) for the entire term of our loan and not get credit for it. They said we could stop making payments and they would repossess the car.

Okay, so the situation now: the BANK screwed up and tried to blame it on our bankruptcy lawyer. They closed our loan, didn't tell us for over a year that they had closed it, never sent us anything in the mail about discharging it. They simply continued to collect our payments every month with a smile and just never said anything. According to them, our loan is closed, but we still have to continue paying or give up the car. According to our bankruptcy documents, the car loan should still be open and our payments should have been going on our credit report. The credit is more important to us than the $3,000 that we have given them. However, if they won't (or aren't able to) put our payments on a credit report, we want our money back. We'll give them the car if they give us our $3,000 back and put it towards a down payment on a new car or just buy an old one.

We don't know if the bankruptcy firm we went to will help us on this at all, if they will see their part as over because they did nothing wrong and already collected their $900 fee. I feel like we are going to get put over a barrel here. Any ideas on how to proceed or how this might go? We plan on going to the lawyer's office tomorrow with our credit report, discharge papers, and proof that we have been paying for over a year since the bankruptcy was discharged on this car.

We are hoping to either get our money back, or get the car free and clear, but I think the bank is going to fight against giving us either, leaving us with no car and no money. Help? Please? <blink blink>

[SinkingFast]

Just as a CYA, you might wanna swing by the Court House, go to the Clerk of the BK Court, and ask how to look up your BK Docs. If the Reaffirmation agreement was indeed processed, it will be on file with the rest of your BK Docs at the Court House. I'd suggest you look on PACER, but sometimes reaffirmation agreements show and sometimes they don't. Once you are sure your Reaffirmation was signed and entered into Court record, you can then approach your Bank on sure footing. You might even be able to get a Copy of the Reaffirmation with a Court Seal on it for a nominal fee.

Call the bank and get the name of the manager of whatever they call the Department of the rep you spoke with. Send a letter, certified mail, to the gentleman you spoke, and to his boss, if he isn't the manager. Send a copy of your Reaffirmation agreement along with your letter. Dispute the fact that they have closed your loan, ask that it be reinstated, and that you want your Credit Reports updated to show "Pays as Agreed" for the appropriate time period.

Generally speaking, your BK attny would probably charge you a fee to handle this for you. Most BK attnys have a list of things they will do as part of their BK services on your behalf. Extra Court appearances, Objections, and Adversarials are usually subject to fees at their current hourly billable rate.

The only way you'd get to keep the car without paying any more payments is if the Bank thought the debt had been discharged in the BK. Which from what you've said, is not the case here. Since the guy at the bank is telling you either keep paying or turn over the car, then that indicates he does not believe the debt was discharged as a part of the BK. In that case, if you give the car back to the bank, you'd be responsible for any deficit balance owed to the bank when they sell the car.

If you do decide to let the car go back to the Bank, don't just let them repossess it. Be sure to arrange to deliver it to them, or where ever they designate, in person. Whoever you turn over the car to, make them give you a signed receipt that they received the car

[no_it_all]

<snip> We also have a paper in there specifically about the car loan and reaffirming the debt, which both of us signed and the paper was filed through the court.

If you chose to reaffirm a debt, does the creditor HAVE to agree to it? Can the bank <possibly> decide NOT to allow a reaffirmation? What if you just dispute the account with the credit agency? That will require them to verify it....which means they will contact the bank, and someone at the bank will have to investigate it. It could be just an accounting error......