HELP Reaffirmation

[HHM]

Did you make payments during the Bankruptcy, Feb, Mar, Apr, and May?

If you weren't absolutely current with your payments at time of discharge, then the finance company can repo your car.

[RichS2192]

Reaff

HHM
No payments made in Feb,Mar,Apr or May to them. knew i had to go bust so I didn't make any payments during the bk.

I did exactly what the judge told me, I can cancel the reaff, I can continue to make payments after the discharge if i want to keep the car, but if I stop making payments then they can come repo. I stopped making payments (paid june thru october) in October and told them to come get it. This was done in writing. Did bk on my own, not attny involved. Used the Ch7 book and info from courts website. Just don't understand how they can come back and tell me that I still owe when it was listed on my BK.

[HHM]

Well, all I can say is that the judge probably didn't realize you weren't current on your payments.

When it comes to reaffirmation agreements in Chapter 7 on secured debt (i.e. cars), you do NOT have to reaffirm if you are CURRENT on your payments. Just because you are in BK, you don't get to stop making your car payment (unless you are going to surrender the car in the BK).

The car finance company has a lien against your car, and bankruptcy does not extinguish that lien, so if you are NOT current on your payments, then they can exercise that lien, despite the BK.

As for what to do now, you should consider re-opening your BK and get an Attorney to help you. Because as it stands now, the car company can repo your car and hit you up for the deficiency balance.

[RichS2192]

HHM Reaff

HHM
The collection company is offering $500 settlement on a 1976.00 balance and I get the car and a clear title. It would probably cost me $500 between attny fees and court costs. Think I should take the settlement? At least it wont show in the bk and should give me a few more needed points on the credit store-- do you agree?