Question about reaffirmation agreements on vehicles

[Martha13]

Can you ask for and sign reaffirmation agreements on vehicles BEFORE your 341 meeting or do you need to wait until after that is held?

[keepmine]

You can ask for them at any time.

[Martha13]

Thanks for the reply, Keepmine I want to avoid having the new creditors on our car loans appearing at the 341 (not that I know they would, it's just that we purchased those vehicles recently, with the intent of reaffirming, and I don't want them thinking there's any "funny business" going on!)

[AngelinaCat]

We reaffirmed our car the day we filed.

[Martha13]

AngelinaCat...did you contact the lender yourself and get the paperwork or did your attorney do it for you? We are filing on Monday and I would love to take care of the reaffirmations a.s.a.p.

[AngelinaCatHub]

We filed as well as the Attorney called. We talked with the bk office of the CU we are with. We reaffirmed our car and overdraft protection. THEY send you the paperwork, you sign it and send it back. If out of state, THEY record it in their own state. Then you cannot list them and will not be released in bk and are responsible for that debt.

[Martha13]

Thanks Cat! Our CU's are both local...I will get on that right away! I appreciate your help. I woke up at 3:30 this morning worrying about that one!!

[AngelinaCat]

How well we KNOW that 3:30 AM wake-up call...

[Martha13]

Is that the BK BELL? Mine goes off at 3:30 every morning now...I just noticed the time I posted my first message this morning..eek!

[AngelinaCat]

That's usually the time I come screeching awake from some nightmare.

However, it has become much less often since I found this forum.

[PaKettle]

How long ago did you buy the car(s)?
If it was more than 6 months I would not reaffirm, I would just do a ride through where you keep paying.
Mine is even showing up as on-time payments on my credit report, which I think helps even though it's also shown as Included in Bankruptcy.
I bought mine about 10 months before filing and I never contacted the bank I just kept paying through the bankruptcy.

[mongoose]

How long ago did you buy the car(s)?
If it was more than 6 months I would not reaffirm, I would just do a ride through where you keep paying.
Mine is even showing up as on-time payments on my credit report, which I think helps even though it's also shown as Included in Bankruptcy.
I bought mine about 10 months before filing and I never contacted the bank I just kept paying through the bankruptcy.

Interesting. I have two cars. One is a sedan worth about $7,000 w/ no lien and I want to give that to the Trustee. The other is a sports car that is worth around $13,000 and I owe around $6,000. I have 1 year left on a 6 year loan. I am hoping I can just continue to pay.

[samantha625]

So, the reasoning for reaffirmation of a car loan, is to keep it out of the bk? We just bought a new car about 2 months ago. The reason we bought brand new is because our other 2 cars are 11 and 12 years old, and neither one is going to pass inspection without at least a few hundred dollars of work on each. (another headache right now) The payments are reasonable and we figured we would have this for a good long while. We buy cars and keep them til' they drop!
So, is there normally a problem with buying a new car near to a bk? I could understand if it was a luxury car, but it's not.
I guess I just don't completely understand reaffirmation.

[PoorGrammyinBK7]

Has anyone reaffirmed a 1st mortgage and not a 2nd HELOC (different lenders) or the same question with cars - reaffirm one and not the other (we have loans on both cars with credit union - same as our 1st mtg). Suggestions?

I would prefer to NOT reaffirm any of them ----- but just keep paying the payments. Bt can they take the cars/houses anyway - even if you stay current?

Worry with reaffirmation is I have a balloon payment in 2 years on the 1st mtg - so a bit afraid to reaffirm, just in case I can't refinance.

[b_girl]

So, the reasoning for reaffirmation of a car loan, is to keep it out of the bk? We just bought a new car about 2 months ago. The reason we bought brand new is because our other 2 cars are 11 and 12 years old, and neither one is going to pass inspection without at least a few hundred dollars of work on each. (another headache right now) The payments are reasonable and we figured we would have this for a good long while. We buy cars and keep them til' they drop!
So, is there normally a problem with buying a new car near to a bk? I could understand if it was a luxury car, but it's not.
I guess I just don't completely understand reaffirmation.

The way I understand it (someone correct me if I'm wrong please) reaffirmation is a legal agreement/contract to continue paying your loan after bankruptcy. This means if you stop paying on it for any reason over the course of the next few years, you can and will be liable for the amount due because you gave up the protection afforded by bankruptcy. As for what the trustee will think when he sees the timing of your loan, I can't say...talk to your attorney and see what he or she advises.