Hearing Set on Reaffirmation Agreement

[dagz]

I received a letter about a hearing on reaffirmation agreement. I need to keep this car and have never been late in payments. Will I take the risk of loosing my car even if I'm not late in payments?

[justbroke]

The Judge will either approve or disapprove of the reaffirmation. In fact, almost all judges will deny the reaffirmation but allow you to continue paying without any affect on your loan and your vehicle! Having the reaffirmation denied would be the best of both worlds since you get to keep the vehicle so long as you continue to otherwise meet the terms of your loan.

[dagz]

Thanks for the quick response. I wonder if the bank will still let me keep the vehicle even If I keep my payments up to date.

[bcohen]

If the reaffirmation is denied, the bank has no choice but to let you keep the car as long as you continue to pay.

[dagz]

I'm only upside down in the loan for $2000 since it's a new car. Has anyone negotiated with the bank to bring payments down?

[justbroke]

I have done this but only with what is known as an (11 USC 722) Redemption (a/k/a "727 Redemption"). A Redemption requires you to have the money or financing to pay the market value of the vehicle and 722 Redemption loans typically have very high interest rates (high teens). Otherwise, the bank is not going to negotiate especially when you want to do a reaffirmation of the debt as it stands under the existing terms.

If you were going to do a 722 Redemption, you would have already set that up as soon as you filed (or before). (I'd like to add this. I'm sent several members down the 722 Redemption path and probably only half (50%) of them were given a loan. It's not as easy as I believed. I had an excellent vehicle financing history having never ever paid late, had more than 7 car loans over the years, and never had a repossession. I don't know if that helped me in my case.)