Reaffirmation Finally Came

[cool33097]

I never received anything from B of A about my car loan. I wish they would send an agrement because I want to sign one. Has anybody herad of B of A? We add 2 cc from them in our matrix, 2nd mortgage is with them (also in the matrix) and ourcar loan. Any opnions?

[Cali]

I talked to Ford about the truck before I even signed paperwork.
And our truck doesn't have anything about BK on the credit reports.

Don't leave this action with your attorney. Contact the bankruptcy department of whomever has financed the vehicle and you will be surprised at the result. They don't want the car back, they just want the payment.

If you just talk with the attorney that they contract out to for your bankruptcy he will tell you that you NEED and HAVE TO sign the agreement.
Don't even bother talking with him, CONTACT the finance company directly.

They'll be happy to keep taking your money without the agreement.

Ford Credit will even change the loan status to "paid if full' after the loan is paid off without any BK notation.

[downwardspiral]

We reaffirmed both our cars, with a little negative equity. Our loan companies said they would not allow us to keep it without a reaffirmation.
Plus when you reaffirm those payments you make on it get reported on your credit, so it'll help rebuild it.

We chose to keep them because they are new and we knew if we tried to buy cars post bankruptcy we'd be paying outrageous interest rates. We have ours at 4%.

[biotechsolution]

We had to sign an agreement for the LT and we were never late on payment.

Don't leave this action with your attorney. Contact the bankruptcy department of whomever has financed the vehicle and you will be surprised at the result. They don't want the car back, they just want the payment.

If you just talk with the attorney that they contract out to for your bankruptcy he will tell you that you NEED and HAVE TO sign the agreement.
Don't even bother talking with him, CONTACT the finance company directly.

They'll be happy to keep taking your money without the agreement.

Ford Credit will even change the loan status to "paid if full' after the loan is paid off without any BK notation.

[Cali]

We had to sign an agreement for the LT and we were never late on payment.

Has for Ford Credit. I had a 0% 72 month loan that was no problem to continue on without an agreement.

[bcvw]

Do some states have a rule that you must reaffirm?

[biotechsolution]

One other thing to keep in mind is how state laws play into this. Finance companies must still abide by state laws when it comes to repo (even during and after BK). Some states have laws that state that as long as you are current, they cannot take your car (regardless of whether or not you signed a reaffirm)

Most states you are protected this way. If you stay current on the loan it can't be repo'd. Has for Ford Credit. I had a 0% 72 month loan that was no problem to continue on without an agreement.

[laurannm]

One other thing to keep in mind is how state laws play into this. Finance companies must still abide by state laws when it comes to repo (even during and after BK). Some states have laws that state that as long as you are current, they cannot take your car (regardless of whether or not you signed a reaffirm)

[justbroke]

Some companies don't make you sign anything and you just continue paying.

And some people need a vehicle so they keep it regardless of it being upside down.

Very good points.

Specifically to your point #1, the Bankruptcy Law Network's article (link posted above) wrote that only Ford Motor Credit was bad at that "Keep and Pay". If I recall correctly, during one of my appearances, and my "hanging out" with the lawyers at the courthouse, they stated that Ford Motor Credit was amongst the most aggressive. I think I heard that Capitol One and HSBC Auto was amongst the more lenient (e.g. accepting "keep and pay" status quo).

To your point #2, yes, it's unfortunate that some of us need the vehicle so badly, that we'll keep it despite having an opportunity to shed some debt.

[Cali]

Some companies don't make you sign anything and you just continue paying.

And some people need a vehicle so they keep it regardless of it being upside down.

[justbroke]

I signed mine, too. Why have you heard it's a bad idea?

I think the problem with re-affirmations is that you have just signed up for that debt again.

If your vehicle is worth less than the loan (note), then you have negative equity. The question becomes, why would you "affirm" a loan for $20K when the car is worth $10K. You just wasted $10K.

That's why you wouldn't sign a re-affirmation.

[justbroke]

I can't wait to read the responses, because I don't have any experience with re-affirmations. Since the debt is discharged in Chapter 7, I would think that they'll attempt to enforce their lien (on the vehicle) if you don't re-affirm the debt.

You're basically talking about a "keep and pay" (without re-affirmation). Here's a link that may help.

http://www.************************/...-and-keep-pay/

[Cali]

It is posted a few times on this board.

I signed mine, too. Why have you heard it's a bad idea?

[WoodSprite]

I signed mine, too. Why have you heard it's a bad idea?

[Cali]

If you don't sign it the company can come and get the vehicle, even if you aren't behind.

If you do sign and later figure out you don't want it, you can't surrender it. But if you don't sign you can.

We signed ours because we know we can afford the truck and will keep it.