Why Reaffirm ?

[manglicmot]

My attorney didn't have me sign reaffirmation papers for my car loan either. I was told that as long as I keep payments current, I will be fine. He knows the law better than me, so I assume there is some California law or regulation that will let me keep the car without reaffirming. I don't believe he would tell me that knowing that I could potentially sue him if my car is repoed without signing a reaffirmation.

[CPO]

A very good post on reaffirmations, thank you.

Thanks, and THANK YOU!! for your wisdom and experience.

We'd be lost without it!

CPO

[HHM]

A very good post on reaffirmations, thank you.

[CPO]

That's a great question. Seems to be a grey area. The new law does not specifically provide for the "ride thru" option as the old law did.

It has modified the process to provide for redeemtion or reaffirmation only, if you want the BK court to PROTECT your right to the property.

Many creditors and petitioners have not met their obligations to reaffirm or redeem, some courts have lost paperwork, refuse to sign the documents, creditors and/or debtors lost or not signed paperwork, etc as to create a "no reaffirmation" discharge.

Some lawyers won't sign them. It obligates them to ensure your able to make the payments. My lawyer does not sign them. So, I rely on the court, if possible.

To me the REAL question is "how is my ownership of property in which I'm making timely payments on protected when reaffirmation does not take place."

This probably is included in consumer law of your state, IF AT ALL.

You may have NO PROTECTION without the BK courts' order of reaffirmation.

Regardless, if the property is repo'd by the creditor, your going to have to return to court, probably with a lawyer, and sue to attempt to get the property back...assuming you win.

A creditor, through mistake or obligation, may feel that repo is their only way to protect their property, and without a court order of reaffirmation or state consumer law preventing them from doing so, they will.

In the meantime, you will be without the property, making payments, paying for legal fees and fighting in court.

So, without redeemtion or reaffirmation protection from the court, you may be looking over your shoulder until payoff time is near.

And, who says they must release the title after you have paid the item off?

Your in default on the original contract, right?

??

Regards,

CPO

Oh, and one more thing. Without a reaffirmation agreement so stipulated, they probably won't be reporting to the credit bureaus either. Rebuilding your credit may be just that much more difficult.

[gak555]

I filed for Chapter 7 last week and my attorney told me not to reaffirm my car payment (which I want to keep). He said as long as my payments are current they will not repo the vehicle. Does this sound right ?