HHM, more reaffirmation details, are we being screwed??

[cherir]

You answered me last night - we signed all the papers for reaffirmation, but they have never been filed by the trustee and we were discharged 11/14.

Well, after what you said, it made me go hmmmmmmmmmmm, so here are a few more details and I would love your opinion.

We signed all the reaffirmation papers in September, in full and complete, after filing for chapter 7 bk at the end of July.

In late October, the lawyer called my husband back up and said he forgot to sign one page and the lender was waiting for that to be signed. That one page ended up being BOGUS for us - it applied to someone filing without a lawyer, which we were not. So, I'm wondering if we were being stalled because......

After the trustee sent out the notice to creditors of possible assets and a proof of claims deadline of February 2nd or something, our car lender filed a proof of claims for what we owed the day we filed. We had been making the payments since June and have continued to do so all this time. If for some reason the trustee DID find money, and the lender was sent a check, isn't that cheating the court? We are paying this loan as agreed!! We have signed a reaffirmation agreemend ensuring we will or they can come after us. Are they allowed to also file a proof of claims with the court???

I think we are being stalled while they sit and wait to see if the trustee gives them any money. If not, then I suppose they are planning on filing our reaffirmation agreement.

Isn't this wrong and should we do something about it? In all truth, we are upside down on the vehicle, but it is our only vehicle and we needed the payment amount to qualify for chapter 7. We went from 2 car payments of 750+ to one car payment of 475 trying to downsize and make our budget work.

If we were able to "change our minds" and give this vehicle back it might be in our best interests. 6 months for our filing will be the end of January. With our small anticipated tax return, we could get a "beater" and be further ahead with our bankruptcy recovery.

Should we just sit here and wait to see what happens after our court case next week (trustee going after our house equity, but already said we are right, she wants it to be case law for our state) and see what the car lender does? Who knows how fast the trustee will close our case.

Are you saying that even if the reaffirmation doesn't get filed with the court, it is still a legal reaffirmation? What if CapitalOne Auto finance is screwing with us, or do I have an overactive imagination? As I mentioned earlier, we have gotten no credit for any payments, and we signed the reaff in September. Why would someone sign a reaff and not get "credit" for the payments on a credit report? What would be the point?

Thanks so much!

[HHM]

The first decision you need to make is whether you want the car or not?

Second, the proof of claim issue is merely a formality, the trustee requested them, so most creditors will go ahead and file one.

As for the reaffirmation, since you signed the documents (incidentally, do you have copies?) that could serve as a defense to any future action by Capital One (i.e. if they attempt to repo if you have not missed a payment). As for the credit report issue, unless the reaffirmation agreement expressly states how the loan will be reported, there is, now, some dispute about how a reaffirmed debt should be reported, some creditors are still reporting IIB, or some other derogatory designation even if the debt signed a reaffirmation agreement.

It sounds like you are not represented by an attorney, correct? If not, contact Capital One (it may take some time to figure out who you need to speak to) and find out about their intentions with the reaffirmation agreement.

[cherir]

Thanks, HHM. Yes, we are represented by an attorney, and are very glad as our case has been a difficult one. And yes, we DO have a copy of the reaffirmation agreement.

Last time I spoke with CapOne's bankruptcy department, which was before I realized any of this, and was simply calling to get my balance and make sure they were receiving payments (since we get no bills, nothing as per bankruptcy stay), they said they will keep our case open with them until the trustee closes our case.

We will contact our lawyer about it next week and see what he thinks.

Thanks.