Reaffirmation Problem, please help!

[ohwell]

Ok, so we get an email from the atty re: our reaffirmation for the car.
He is providing a declaration to present to the court since we are negative on our schedule J, to increase our chances of keeping the car (its our only vehicle, great financing terms, my hubby has a long commute to work, we have a baby, etc. etc.)

We surrendered our other vehicle.

However, he is putting in there about the family member vowing to help us(no names mentioned).
We have NO ONE to help us as far as committing them to give a written letter stating they would help us with a car payment. I have mentioned it, and I swear I could hear crickets.... talk about AWKWARD. So, not going to happen.

My question is, how many people really have to provide proof of help from family? We have mentioned to the atty that its not going to happen about getting a letter, and his response is that we just say that circumstances have changed if they want proof.

Also, how soon do you find out from filing something like this that it won't go through? Or that a hearing is needed?

This is so stressful, the payment for the car is coming up soon along with the registration, and that money could go towards a beater if we get rejected. We have a loan with Ford Credit. Their atty's sent us the paperwork and are willing to keep the terms the same(3.9% APR, so we can't get any better).

I just want some feedback in this. I was worried this was going to happen re: the letter scenario, and it has cause stress amongst my family that I even asked before, and have nowhere to turn.
Right now I wish we could surrender this one, save up the money for a piece of junk, but then its a fear the US Trustee will stick us into a 13 if they can scramble up and get disposable income out of us...

Also, what kind of letter do they want? Is it notarized with contact numbers and addresses if the family/friend willing to help? Not that I am going to go there of course, but it all seems so ridiculous, given its not even legally binding.

This sucks.

[whatamess]

This is the exact reason we did a ride through. My mother said she would write the "promisary note" but really, she is on SS. She could not even if she was willing to lie and say she could. My very well off relatives gave me the crickets too...lol. "Cheeep cheep cheeeep.. " I said heck with it, happy ride through to me. I called Toyota and they said NO problem, just get us the check ON TIME or early every month. I make sure to have it sent out two weeks before due now.
I can't say I blame them though for the crickets. I most likely would not do it either. Im very cautious now. The other day at the wholesale club I put half my cart back before checkout. "Cheap cheaap" is becoming my motto.
Good luck....I hope this works out for you because it is an easy way to build credit again.
WAM

[ohwell]

Thanks.
The documents we have does not allow a ride through - it is stated that "Pay and retain is not an option" and bk is an act of default with DCFSA, this is in bold type and underligned in our paperwork.... you'd think they would want our money, given that we are upside down on the car, almost 10k difference between our loan and the value of the vehicle(a loan tacked onto another due to a trade in).

The unknown is what concerns me. I don't understand what people do if there isn't a ride through allowed, it has a domino effect on your schedule J, and then they decide that you have disposable income to pay creditors? That's ridiculous, for we need to buy a car outright and scrape together money(which we still would need to get a loan for a used vehicle), or get a new car with a horrible interest.

[rrockinggramma]

722 might be your answer

[whatamess]

Wow, who are you financed through? Have you tried to call them and ask about it anyhow? In my state you are not supposed to ride through but the car compnay was more thna willing to do it.
So if you cant the 722 will help. They money should be exempt as transpo anyhow.
WAM

[ohwell]

Its Ford, and this is the reaffirmation from their attorney in regards to no ride throughs. We shall see what happens, we are already 30 days past our 341, and with Thanksgiving coming up, I am hoping to get some resolution with this before we have to make a payment(27th) for this car. I am worried that the wires will get crossed and we will be screwing ourselves out of the money for a car we won't get to keep either via Ford objecting or the bk court. I didn't realize that there were so many steps to this.
I had a feeling our atty was going to have to claim hardship, he's playing chicken it looks like right now. I just want an answer. In the big pic of getting all our debt discharged, this is minor, however the immediate problem is concerned. Since we had to let a car get repo'd already and a home in foreclosure, there are more dings to our credit than bk, so I am not sure what kind of loan we could get, even the 722....

Crossing my fingers this is over with soon. I like the car for safety reasons due to the baby(its an SUV), and don't really want a beater and risk our safety....

Ugh. I wish we were in a safer area and public transport was also an option, but we are not.... can't live without a car.

[Ravenleader]

Keeping the car ~ no problem

I filed chapter 7 pro se, and was just discharged Oct 31. We filed a reaffirmation and because it was pro se we had to appear before a judge at the discharge hearing. Two others were before us one wanted to keep a big screen tv, and the others including myself wanted to keep cars.
The judge explained that the purpose of the inquiry was to keep folks from retaining more debt than was sensable.
So here are the points.
1. The judge felt that if you were going to keep the debt then the financing firm should make some kind of a concession to you ie. discount or something, because if they had to pick up the item and resell it they were going to lose money. In the end all they are concerned about is getting their money.
2. If you are up to date in your payments then they could not pick the car up even if the judge did discharged the debt because you had complied with your contractual obligation. So if your Debt is current keep the car or whatever.
3. Knowing what I know now I would never have filed a reaffirmation agreement. You still have file the debt as part of your case. Talk to the people with your loan tell them you are going to keep the payments current so they don't panic when the notice of filing comes in.
Good luck.
Rick

[ohwell]

Raven, I guess I am mostly concerned because Ford is a high repo risk despite current payments. Ford does not allow ride throughs, and frankly giving them money without reaffirming and them just taking the car anytime is really stressful. Our loan terms are the original terms, so there is no negotiations(our apr is 3.9%).

I guess I need to just let it go and wait and see what happens. Its scary though since the nearest store is 2 miles away, and public transport isn't where we are. We have 2 children, and how in the world do they expect us to get the older one to school, and get groceries? It just pisses me off they don't allow the ride throughs anymore...

Ok enough venting...

[Ravenleader]

So the judge rejects the reafirmation agreement. The couple before me that had the big screen tv was rejected, but the judge told him that as long as he kept the payments up they legally could not repo the tv. Because?, because he was doing everything required under the original contract. So they said they would keep it then. The judge said that he rejected it because it was a lousy deal with too high of interest, but if they wanted to maintain the payments and keep it that was their business. All the Reaffirmation does is keeps the bankruptcy from affecting the contract between you and the finance company. When he denys the reaffirmation then legally the debt does not have to be paid, but if you miss a payment the collateral will be gone as well.
This is not legal advice and since you have an attorney you need to run it by them, but this is what the judge said at my proceedings.
Rick

[biotechsolution]

Ford does ride throughs

OhWell. I have a ford loan 0% 72months and was 3 years into it when I filed. The attorney, some local attorney, sent me most likely the same paperwork you received. Big bold print, you must reaffirm the car if not FORD will take any and all action including repossession, blah blah blah. I wrote on the paperwork that I wanted Ford to not report the BK and list payments how they were reporting before. Never heard back and 3 days before discharge I finally call him he says I then have to strike the part I put in out and resend him the agreement. Instead I called Ford Credit up directly and they have no problems with me just to continue to make payments, just don't be late. In addition I believe most states have protection against repossesions if you are paying the payment on time.
The attorney's that Ford Credit hires to do these reaffirmation agreements are no different than Collection Agency attorneys.
Half the time Ford Credit doesn't even know who they are.