Need some advice..

[mxmom141]

I have only posted a few times here on the forum but I have learned so much just by reading all the post. Hopefully one of you can help me with our current situation that has me a little concerned. We are now in our 60 day waiting period after our 341meeting about three weeks ago. We went into this bankruptcy knowing we would be giving up my car because we are so upside down on it that it is the only logical thing to do. Our lawyer advised that after our 341 meeting that he would let us know what we would need to do when it comes to relinquishing the car and then also getting the paper work together for the reaffirmation of the car that we are keeping. Like I said we had our 341 meeting about 3 weeks ago and a few days after we recieved a letter in the mail that the bank that holds the loan on my car is wanting to go back to court and have the trustee lift the stay so they can repo the car. I called the lawyer and he said not to worry that since we were not going to keep the car that we didn't need to show up in court and he would get back to us with all the info on what we need to do next. Well that was about two weeks ago and we are quickly approaching the court date. I have been trying to get a hold of the lawyer since last week and only have been able to leave messages with the receptionist. Well today I called and said that either I get a call back by the end of business today or I would be down at their office first thing in the morning. Of course the lawyer did call back but my husband and asked what the problem was. He explained that we need to know what to do with the vehicle we are relinquishing and how we should handle the other car loan that we are keeping. The lawyer told him to just call the bank who we are giving the car back to and make arrangements with them to get the car. Then he said to not worry about the other car loan just keep making payments and that is all we need to do. I was under the impression that we will need to sign some sort of reaffirmation agreement for the auto loan we are keeping and it has to be filed with the court....I could be mistaken but his advise just concerns me. So we call the bank and say come get your car that we have decided to give it back. And then we will not be liable for it any further. Is this correct?? And as for the other loan we don't contact them at all and just keep paying payments. It just seems strange to me. Can anyone shed some light on this for me since our lawyer seems to be slacking a little bit at the moment?? We are just so close to all of this being behind us that I really don't want to mess anything up because our lawyer isn't up to speed!!!

Mxmom
Filed 8/3/7
341 Meeting 9/12/07
Just waiting our 60 days now!!!!

[BassBoy]

For the car you are surrenduring.....calling and making arrangements for pick-up is just fine. And yes, you will not be responsible for any outstanding balance. That will be discharged.

For the car you are wanting to keep.....continuing to make the payments is called a "ride through". Even though this is no longer an option under the new law (post Oct.15,2005), some lenders are allowing filers to do this. Your attorney is correct, as long as you continue to make the payments, the lender will allow you to keep that vehicle. An FYI, reaffirming a loan makes you responsible for the unpaid balance if you default. In a sense, reaffirming a loan is basically excluding it from the BK.......so........not doing a reaffirmation is better for you in my opinion. If you ever decide to let the car go, you can and you will not be respoonsible for the unpaid balance if you default and that vehicle is repo'd.

[JRScott]

Your lawyer is doing a ride through on the one car as explained above. Many lenders are still allowing them. One reason that lawyers prefer to do them when they can is that they also have to sign off on your reaffirmation and there is still some question of how legally responsible for the debt they become if you later default and can't pay. So they prefer to err on the side of caution.