What exactly is "re-affirming"?

[Doghouse]

Is it implied here that you can re-negotiate the balance owed on your car loan?

I owe about 15K to a Credit Union on a car that's worth anywhere from 14K to 17K depending on where you look. Do you negotiate while still current on car payments or do you need to miss a payment or two? I've never missed a payment and had planned on signing a re-affirmation agreement to keep the car when I do file for bk in about 3 months. Had my last car for 10 years. Bought this one new 2.5 yrs ago and plan on keeping it for a very long time too.

[StartingOver08]

Yes. You can renegotiate all the terms in the reaffirmation agreement. If you can not come to reasonable terms, then you surrender the car.

[debtmonster]

What about my original question? What happens if you still have the car after you file BK and did not re-affirm? Will they want it back? Can you keep it for a while and then give it back or can they sue you for having it for 12 months after giving it back then?

I need to keep my car as long as possible until I can save up for a replacement, then I want to get rid of it.

[debtmonster]

<< DELETE THIS MSG >> Message was posted twice. The forum froze up during the post...

[PoorGrammyinBK7]

Debtmonster, on the deal that is almost done, I was able to reduce the principal balance, reduce the interest rate to 5%, skip a month, extend the payoff two more months, remove cross-collateralization (because this is a CU) and reduce the payments nearly $100/month from what I had been paying.

The other lender is playing dirty pool...so if I can't get what I am looking for I will not reaffirm and surrender the car. Just what they need - another high milage used car!

Just wondering what CU that is...

[Intoodeep80]

Ok so I havent made payments on my SUV since July. I am surrendering it and have told the bank, when they called looking for their bucks, to come and get it. They said they will not come and get it until after Im discharged.

Does this mean that after Im discharged, I can call nat city and say "listen, lets talk about this. Ill give you $5000 for the vehicle", of course, assuming thats a fair offer.

They would go for something like that?

[StartingOver08]

You could try it. Of course you need to be careful now because you have told them you are surrendering and I notice you have not actually filed yet. Maybe they plan to snatch the car before you file.

[BassBoy]

If you don't sign a re-affirmation agreement during the BK, will they take the vehicle or can they still let you have it?

Can you theoretically file BK, keep the vehicle and make payments for 6-12 months and then give it back and buy a new one and not have them come after you because you filed BK protection on that vehicle?

If you do not reaffirm, the lender will more than likely repossess the vehicle after your discharge and you've skipped the following month's payment (30 days late).

Yes, you can keep the vehicle, continue to pay the loan so you can hang on to it and then you can surrender it without recourse.