Can I ride through on car loan?

[tjsmiley]

My car payment is too high and I need to get rid of it. If I surrender it during bankruptcy, that will leave me with no car after they come and get it. Can I state that I plan to reaffirm, without actually signing an agreement with the lender? At least I could drive it and pay on it until after my case is discharged, then give it back and apply for a new loan on a much less expensive vehicle.

Am I missing something? Is this allowed?

[JoePlumber]

Your in a tight spot and since you just filed you might want to see if you can trade it provided there is a market and its worth more or the same as you owe, but as soon as your discharged they will come and get it if you don't reaffirm... yet be careful, if you say your intent to reaffirm and you play games and try to back out, your on the hook No matter what you want to try and you have ZERO chance at getting out of that debt.... NEVER affirm a debt you think may be difficult to keep up on. I think you have until your discharge and then someone will arrive to take your vehicle, yet don't take my word on that... but usually when you fall behind from the time you file til your 341 meeting, you will get new offer with better rates and new terms, provided its not so expensive that your screwed either way... Good Luck to you...

[debee]

Yes. You would indicate reaffirm on your SOI, stay current on payments and insurance and just ride through.

BUT, the lender has to be okay with it. If they insist on a reaffirmation agreement and you don't sign, they can repo.

Most lenders don't require reaffirmations. You can call them and ask what their policy is. Our credit union had their policy posted on their website. If you want to remain anonymous, don't call from home (or cell if they have the #).

[LSUTiger32]

I just want to add that you can file and NOT make the payments and probably drive it for 3 or 4 months while you save money for a "junker clunker" (as those who prefer 60 payments @ $500 call it). I had a car with Toyota a few years back and I filed in August of having made the last payment in July. They picked it up the last week of November......so I drove it for free for nearly 4 months.

During that time, I saved the payments and along with a little from my tax refund I bought a $2,500 car and put $500 into it for new tires and some fluid re-freshening. Still runs like a champ today.

Let me add this......

Some car loan companies (Ford Motor Credit for one) will not allow this. They will force a re-affirmation or they will come get the car.

[clevelandmom]

There is also the possibility of doing a 722 Redemption. Ask your attorney about it. We are in the process of trying to redeem our Ford right now, however, we were just discharged so we are going to shop around this weekend because I'm betting we can get a better deal than a 24% interest rate.

[LSUTiger32]

There is also the possibility of doing a 722 Redemption. Ask your attorney about it. We are in the process of trying to redeem our Ford right now, however, we were just discharged so we are going to shop around this weekend because I'm betting we can get a better deal than a 24% interest rate.

Why in the world would you redeem a car? Either continue making the payments with Ford (they will certainly do a reaffirmation) or just buy a car with cash. Why would you want to basically re-fi it at 25%?

722's are a horrible idea, total rip off.

[clevelandmom]

The Judge said no to reaffirmation and Ford will absolutely positively not allow ride-thrus. Have any cash you want to loan me?

[ruttie]

I thought that if you/your attorney files the reaffirmation agreement, but your attorney does not sign it, it goes to ajudge. If the judge denies the reaffirmation, due to financial hardship. meaning that the judge determines that by reaffirming the vehicle you cannot afford, that the reaffirmation agreement still stays, but if you default in the future the lender can only take the vehicle & you are not personally liable for the debt.

[ruttie]

can you redeem a vehicle in a chapter 7, everything I have read, makes me understand that you can do a redemption in a chapter 7, but my attorney you can only do it in a chapter 13? Are the BK judges in az. more apt. to deny a reaffirmation?

[IBroke]

can you redeem a vehicle in a chapter 7, everything I have read, makes me understand that you can do a redemption in a chapter 7, but my attorney you can only do it in a chapter 13?

You have 3 choices:

-Redeem
-Reaffirm
-Surrender