How does the reaffirm thing work again?

[Adchick]

Forgive me, but I can't find an answer to my question anywhere.

I am filing Ch 7. I am upside down in my car but cannot be without one. Considering trying to purchase another one after discharge. (because it seems like keeping something I am so over my head in kinda defeats the purpose of a "fresh start".)

My question is this...do I have to reaffirm in order to keep my car or can I just continue making the payments? [hypothetically] If I decide to buy a new car after I am discharged and am approved, can I let my current car go and would it be considered "included in bankruptcy" since I didn't sign anything to officially reaffirm it?

p.s. my auto loan is with HSBC so experiences in dealing with them are greatly appreciated.

[keepmine]

If you don't reaffirm, you have no obligation for any deficiency balance should you decide to let go post bk.
Many lenders are not insisting on reaffirmations. Maybe someone has exeperience with HSBC.

[JRScott]

It depends on the lien holder of the vehicle as to whether you can keep the car without reaffirming. The bk law does not specifically allow a 'ride-through' any longer. However many lien holders seem to be allowing 'ride-throughs'.

So long as you don't sign a reaffirmation agreement then you can let the vehicle go later without recourse from the lien holder and it would be IIB. The problem also without signing one is that if you miss a payment they can come get the vehicle (but again you still wouldn't be responsible for any deficient amount.)

If you sign a reaffirmation agreement and then later have to let it go then you would still be responsible for any deficient amount and it would be another hit to your credit report.

[lrprn]

The bk law does not specifically allow a 'ride-through' any longer. However many lien holders seem to be allowing 'ride-throughs'.

Actually the current bk law does allow 'ride-throughs' but only if the car was purchased more than 910 days ago. Cars purchased less than 910 days before the filing date must be listed on your bk forms at their full loan value.

[BassBoy]

If you do not have to reaffirm, then don't. You're upside down on the vehicle and if you were to reaffirm, and something happened you could no longer pay, then as others have said, you're responsible for the deficieny after the repossession and sale.

If you are not given a choice, then you've got a tough decision to make about whether to keep it or let it go. IMO, it's sometimes better to use the fresh start to your advantage and look at getting another vehicle after your BK is discharged.

[whatamess]

Im not sure about HSBC, but Im going to do a ride through with Toyota. I called them on the phone and they said it was a non issue, everyones doing it. Call HSBC and ask.
I wanted to reaffrim at first, then after careful thought why in the world would I obligate myself to something that is not mandatory?
I will just make payments on time.
WAM

[Adchick]

If you don't reaffirm, you have no obligation for any deficiency balance should you decide to let go post bk.
Many lenders are not insisting on reaffirmations. Maybe someone has exeperience with HSBC.

How long do I have to let it go post bk? A month, a year?

You guys are the best, by the way. I feel so much better knowing I can ask questions here and get honest answers from real people. (not that my lawyer isn't a real person. )

[BassBoy]

A little time

How long do I have to let it go post bk? A month, a year?

You guys are the best, by the way. I feel so much better knowing I can ask questions here and get honest answers from real people. (not that my lawyer isn't a real person. )

Looking back through your posts, you are about to file soon, right? If so, then you have a little time. When you file, the automatic stay will keep the creditor from calling you and will keep the vehicle from being repo'd when you stop paying. Now, keep in mind that as soon as you skip the payment, the lender will file a motion to lift the stay, then a hearing will be held to grant the creditor to lift the stay and then your car will be repo'd. As to how much time, it's hard to say, but if I had to take a guess, I would say the vehicle may be repo'd in less than a month after the lifting of the stay is granted.

Don't be afraid to any questions on the board. There is no such thing as a dumb question. We will do our best to help you.

[Adchick]

Looking back through your posts, you are about to file soon, right? If so, then you have a little time. When you file, the automatic stay will keep the creditor from calling you and will keep the vehicle from being repo'd when you stop paying. Now, keep in mind that as soon as you skip the payment, the lender will file a motion to lift the stay, then a hearing will be held to grant the creditor to lift the stay and then your car will be repo'd. As to how much time, it's hard to say, but if I had to take a guess, I would say the vehicle may be repo'd in less than a month after the lifting of the stay is granted.

Don't be afraid to any questions on the board. There is no such thing as a dumb question. We will do our best to help you.

I am filing tomorrow. Looking over the petition my lawyer emailed just now to make sure all creditors are listed correctly.

I intend to keep paying for my car, what I'm wondering is if I don't sign an affirmation agreement, am I still able to let it go once the bk is discharged (and have it included)? or does it have to happen before the discharge date to be IIB? ie. I don't want a repo AND a bk on my credit, ya know?

(I hope I worded that the right way)

[keepmine]

With no reaffirmation agreement, you can let it go anytime post bk with obligation for any deficiency balance.
Have no idea about the credit reporting issue.