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    Reaffirming question about our car loan....

    So our 341 is coming up....April 16th. Today in the mail we got paperwork from our attorney about reaffirming our car loan with Toyota. They sent us the paperwork from Toyota requesting us to reaffirm and why they think we should. HOWEVER, our attorney's office does not recommend it and goes on to tell why. SO....we are NOT behind on our payments and have never been. We will continue to pay. Will Toyota take our car from us if we don't reaffirm? Has this happened to anyone before? I know that by not reaffirming, it will not help us with boosting our credit score or help us with getting another car loan through Toyota. I would like to hear what others did or what happened? We are also doing the same with our mortgage.....not reaffirming it but paying it each month. Are we making a mistake NOT REAFFIRMING THESE? MY gut says to listen to our attorney but of course the paperwork from them says it is our decision.


    THANKS SO MUCH!!!!!

    #2
    I don't know if Toyota is one of the companies that require reaffirmation. The only one that I know, for sure, is Ford Motor Credit (FMC). You will need to ask your attorney about TFS (Toyota Financial Services) and whether they are like FMC.

    Reaffirming is almost always not a good idea, unless you have equity, payments are on time, and you have no choice.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog


    I am not an attorney. Any advice provided is not legal advice.

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      #3
      Generally speaking, there are only two times you should reaffirm anything: "never" and "when Hell freezes over". At all other times, it is best to "ride through", i.e. to keep paying the loan if you want to keep the home/vehicle, but not reaffirm. The only exception should be if the lender requires it, and you have positive equity.

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        #4
        Originally posted by justbroke View Post
        I don't know if Toyota is one of the companies that require reaffirmation. The only one that I know, for sure, is Ford Motor Credit (FMC). You will need to ask your attorney about TFS (Toyota Financial Services) and whether they are like FMC.

        Reaffirming is almost always not a good idea, unless you have equity, payments are on time, and you have no choice.
        I don't believe they are. Our attorney knows we have the Toyota and has told us a few times they don't recommend it. I will check in with him on Monday.

        I guess just reading the paperwork that Toyota's attorneys sent just got me thinking about this making sure we are doing it right. Nothing on there says we have to. On the agreement it says as of our filing date that we owe 17,750 and the market value is 13825. The paperwork says that a reaffirmation Agreement makes a beneficial credit report possible. Enables the debtor to maintain standing with our client for seeking future credit from them. Permits debtor and creditor to work together freely to find solutions that are beneficial to both parties.

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          #5
          Originally posted by bcohen View Post
          Generally speaking, there are only two times you should reaffirm anything: "never" and "when Hell freezes over". At all other times, it is best to "ride through", i.e. to keep paying the loan if you want to keep the home/vehicle, but not reaffirm. The only exception should be if the lender requires it, and you have positive equity.
          LOL this make me LOL literally. Thanks!!!!

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            #6
            Originally posted by RollTide View Post
            Reaffirmation... "makes a beneficial credit report possible. Enables the debtor to maintain standing with our client for seeking future credit from them. Permits debtor and creditor to work together freely to find solutions that are beneficial to both parties."
            I am so glad I wasn't drinking my water at the time I read that. Wow!
            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
            Status: (Auto) Discharged and Closed! 5/10
            Visit My BKForum Blog: justbroke's Blog


            I am not an attorney. Any advice provided is not legal advice.

            Comment

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