Auto reaffirmation and proof of "no hardship"

[whatamess]

Okay,
I mentioned before my attorney didnt want to sign the reaffrim. Toyota sent him the papers and he forwarded it to me, with notes to the side stating that in order to reaffirm we would have to state proof of no undue hardship before the judge/trustee and let him decide. Have to get this back in the mail asap.
We are negative $220 and the car payment is $275.
I discussed this at great length with both my mother whom we live with and my husbands parents. My mother said she would sign a statements she would lower our housing payment $300 a month until the car was paid off in 27 months. Also, my husbands parents who live overseas said they would help make car payments if thngs got tight. (They bought us the car this car replaced as a gift, that car was totaled and we used the money from that car settlement tp put the downpayment of $10,500 on this one.)
My mother has interest in our keeping of the car as she is elderly and needs rides at times as her transport is unreliable at best.
So, do you think it sounds like it will fly? I tried to call attorney...waiting game as usual.
How would you word this?
WAm

[NowOrNever]

WAM,
We were in the same situation. Our disposable income was too low to make the car payment. We had to go before the judge (I was shaking like a leaf!). Anyway, my wonderful FIL had written up an agreement that he would cover any shortfalls we may have and would guarantee the car payment would be made. Our vehicle was financed through Ford. It was the only car we had with less than 90K miles on it.

The judge did question us on FIL's income, which is just SS and work retirement, to ensure that he would be able to make the payment if necessary. But he wasn't there with us or anything to verify.

I don't think the judge would've approved our reaffirm if we hadn't had that paper from my FIL. I think it would help alot if your mom would put something on paper to show the judge. Hope this helps.

[danaf]

I thought if your car payments were current, you didn't have to reaffirm?

I have a toyota too, is this what I'll have to deal with?

[biotechsolution]

Talk to Toyota directly also.

If you talk to Toyota directly they my allow you to keep the car even if you don't have a reaffirmation agreement. If you have been making payments on-time and haven't been late I doubt if they want the car back. See what they say.
The negative for you is the car will always be reported has IIB, you won't get the positive tradeline. But you should be getting credit card offers 6 months after discharge anyway.
The advantage for you is that you can still walk away from the car at anytime in the future.

[danaf]

What are the ways one can achieve a reaffirmation agreement without involving a lawyer?

[whatamess]

I think there is no reaffrim w/o the lawyer and or judge.
I was told our judge doesnt 'allow' for ride throughs.
Im calling toyota tommorrow!
It would be hard to get a written statement from my family overseas. They only speak and write in an Asiatic language!! Mt fil retired from a large eletrics corp and could help us if needed. They could (and have) wire us money to our bank if needed asap.
WAM

[danaf]

what is a ride through?

[JRScott]

Ford Motor Credit is the car company that has been a stickler for the newer laws. Toyota has been more willing to work with folks, I'd call them up and work it out if you can.

Danaf a ride through was provided for in the old bankruptcy law, the language of the 2005 Bankruptcy law did not include the language for it. In it you basically so long as you stayed current on your payment could keep a vehicle without a reaffirmation or redemption agreement with the lien holder. Some jurisdiction still allow it as does some companies. Like I said though Ford seems more a stickler for the redemption, reaffirm, or surrender language of the new law (Though some here have had success with Ford as well).

As for a reaffirmation if you file Pro Se. Then you have to appear in court before the judge yourself. You would have to contact the company yourself and ask for a reaffirmation papers. In showing that it is not an undue burden on you you have to show that you have some disposable income after all expenses are met. However this amount needs to be low or you'll get yourself trapped into a Chapter 13. Probably 20 to 50 dollars extra left over at the end of the month after paying the car would be sufficient.

[cathywhite4495]

I'm pro se and I'm doing a reaffirmation. The company sent me the agreement automatically. I called them and was able to negotiate a 6.5% decrease in my interest - which lowered my payments br almost $50 a month.
Like JR said, you have to have a hearing with the judge before you're discharged for him to approve it.

[biotechsolution]

Ford worked with me.

I didn't get my agreement from Ford's attorney before my cased discharged and closed. But when I called Ford they said I could keep the car but gave me the threat of if I was ever late they could reposses the car. My loan is 0% so I"d be crazy to quit it.
But I was always current on the payments (direct debit) now I set up the direct debit through my checking account.

[whatamess]

I wanted to update about Toyota.
I called them and told them our situation. They said that with Toyota you
1) send payment to the same address as before. you will be cut off from paper bills, online access and online bill pay unless you reaffrim. They do allow ride throughs! They will not repo unless your late, but if you dont reaffirm they will repo much faster. So pay on time and you are a-okay.
Im now wondering if I will even bother to attempt to reaffirm. My husband wants to so he can get our credit back faster.
WAM

[danaf]

Thanks for the update!

[wrktwoliv]

Most attorneys will tell you not to reaffirm if you don't have to.
The biggest plus if at anytime you can turn the keys in and walk away.

I'd bet if you got a secured card and then an unsecured card 6 months later that might do just has much to build your credit up.

[danaf]

see, I don't get why not reaffirming would be a big plus after you put so much into paying towards a vehicle? Can someone please explain this aspect to me?

[lrprn]

see, I don't get why not reaffirming would be a big plus after you put so much into paying towards a vehicle? Can someone please explain this aspect to me?

Two reasons, danaf....

1. If you don't reaffirm, then if something unexpected happens after your case is discharged (illness, divorce, job loss), then you can walk away from the car not owing anything. However, if you reaffirm, then you will owe whatever is left on your loan after the car is repossessed and sold at auction.

2. Many people recommend reaffirming so that the car lender will report your payments to the "big three" credit agencies. The only problem with this logic is that there's no guarantee the lender will do that. Reporting to the credit agencies is voluntary. Some lenders refuse to report positive payments even after filers reaffirm. It's important to be sure that reporting to the credit agencies after your discharge is included in your reaffirmation agreement!

Hope this helps!