Ford Motor Credit said no need to reaffirm

[CindyLou]

Bought a car a few weeks before filing. Made payments on time since. Listed on BR. I called them and they have transferred my case to the bankruptcy department.....but they said no need to reaffirm as long as I keep the payments up to to date they don't care....no difference to them... Does this make sense? I had them listed as reaffirming but they were not interested in the paperwork.

[bkfiler]

well, others will chime is that have been through this but in the meantime...

i think the only difference is that if you dont reaffirm then you never really owe it anymore and it just becomes a 'if you pay then you still get to keep it deal' but i think it will show as bk'ed and $0 owed on your report (i might be wrong on this part of the credit reporting becuase after you pay it off they may go ahead and show it as paid as a favor to you when its done). so no way to show building of credit. but, you also get to let it go anytime you want to as well. so mostly good stuff imo.

on the other hand if you reafirm, then you will always owe it and still get to keep it. if you stop paying then they take it and show a negative on your report.

more then likey you can just forget the reaffirmation cuz its less risk to you. and then you can dump it later without still no risk to you.

why they dont want you reaffirm i have no idea though. its in their best interest of course.

[bkfiler]

what was the total price, monthly payments and apr on it if i may ask? oh also make model and year of car too.

[CindyLou]

It is a 2005 Ford Focus...4dr fully loaded..brand new. Sticker 18500. put 1000 down with 2500 rebate...so after taxes, etc..financed $16500 at 13%. Not bad for my credit score....which was very low. ..payment $420 for 4 years... Yes, on my credit it says 0 owed already. I was in the same school of thinking as you. It is in my favor not to reaffirm...as long as I'm sure I can keep it. They did tell me however if I decide to refinance or purchase another vehicle they can write a credit reference to show the account has been paid on time. I am impressed with them and very happy with how they have treated me through this!!

[pink_amulet]

Surprising that Ford didn't want to reaffirm. Ford are real a$$*%*$# when it comes to payments. My ex had his car repoed after just being 28 days late (once). ..They got a judgment quicker than that on him, so he filed BK on them. It was the only thing listed on his BK, he was still living at home.

My only advice is to make sure your payments are early, since you are NOT reaffirming they can take that car from you if you are 1 DAY late, just to be snots!!

good luck.

pink-amulet

[down @ out]

I would not re-affirm if the creditor is happy with you just making payments. This way if for some reason you cannot make the payments you can simply walk away from the debt and they can`t come after you.

I filed in Nevada and also had a new car. In this district the courts allow folks to simply make payments and not re-affirm. Some districts make you re-affirm. I have kept my payments and my creditor said the same thing. As long as it is current we don`t really care.

I plan on keeping the car. It is a great auto and when I bought it I had good credit and was able to get 2.9% financing. Hate to think what it would be now.

Anyway good luck and keep the payments current.

[StaciMM]

There are only a couple of situations where I think you SHOULD reaffirm:

1. You are very close to the end of repayment, and might as well get the credit to show for it. (In other words, practically no chance that you'll need to stop paying.)

2. The loan is joint with someone who isn't filing BK, so it will need to stay in good shape for their sake.

Being on the new end of the loan, it is only to your advantage NOT to reaffirm. If something happens and you need to give up the car and payment in a year or 2-you can w/ no harm done. Not only that, but if you are applying for a home loan in the next couple of years, that $420 payment will NOT count against you in your DTI ratio.