Car payment

[bbhtigger]

I am pro se and I filled 10/06/16 Do I keep paying my car payment? I do want to a Reaffirmation

Agreement.

[LadyInTheRed]

If you want to keep the car, you should keep payments current.

[bcohen]

Always think twice before reaffirming a car loan, especially if the vehicle is way "underwater"--i.e. you owe a lot more than it's worth. Reaffirming benefits the lender. It does not benefit you, and should not be done unless the car is worth at least as much as you owe on it. Otherwise, it's best to do nothing, and continue paying if you want to keep the car. Although the option for "stay and pay" no longer exists on the Statement of Intentions, you can still do a "stay and pay" if you check "reaffirm" or "redeem" but then never follow through with the reaffirmation/redemption.

Of course, if you are way "underwater" on the loan, you might be better off to stop paying, continue driving the car while your case is open, and then buy something else once the lender takes it back. One of the benefits of bankruptcy's "fresh start" is to eliminate debts such as negative equity in a car.

[despritfreya]

Please be careful.

If you state that your intention is to reaffirm or redeem (or even surrender) and do not act on that intention, the protection of the automatic stay is removed 30 days after the 341 meeting. See 11 USC 362(h).

In many jurisdictions (you fail to indicate your State), judges will allow you to sign a Reaffirmation Agreement, thus fulfilling your duty to "act" on your intention, but simply will not approve the Agreement. This protects the debtor from having the vehicle repoed unless payments become delinquent or the debtor allows insurance to lapse. In Arizona, the judges’ actions are typically referred to as issuing a "Moustafi Order". Here is the link to the case that Arizona uses:

https://www.courtlistener.com/opinio...n-re-moustafi/

And, in answer to your question, as Lady states, keep the payments current.

Des.

[justbroke]

Hey despritfreya ! Thank you for stopping in and helping this Pro Se debtor.