Reaffirming car in chapter 7 - is this correct?

[lalap123]

I recently read something on an atty's website that said that if your budget shows a negative amount available every month the court will deny your affirmation agreement. Is this true? Obviously we would/could get rid of lots of budget line-items before we would get rid of our car. It's not overly expensive and is a larger vehicle b/c we have three children. How likely is this to happen?

If it does, can I just transfer the car to my husband after the reaffirmation is thrown out so that he can take over the payments?

[2live]

I'd like to know as well since come March my new income will just barely make the bills, including the car payment which I have just 2yrs left to pay, not upside down and payment less than $270.00/mo. If they don't let me keep it I won't get a better deal anywhere.

[TEW]

A reaffirm has to be approved by the judge. and yes if you have a negative number on your disposable income the judge may deny it. Don't reaffirm just do a ride through

[2live]

lalap, I don't mean to hijack your thread but it's related.....on the packet I filled out the only options given were to reaffirm or surrender so I just wrote in "keep paying".

[TEW]

yeah just keep paying and don't sign the reaff

[lalap123]

I'm in GA and you have to file a reaffirmation agreement

I'm pretty sure...will ask atty about this.

[lalap123]

BTW...how can you file ch 7 if you aren't in the negative?

I thought you had to be in the negative to even file ch 7? Is the goal to show $0 left after all expenses??? I would think that would be impossible.

[Keebler]

I was in the negative and the bankruptcy judge denied my reaffirmation on my HOUSE. I didn't even BOTHER trying to reaffirm any cars after that.

[lalap123]

Wow...what were your circumstances?

How far in the negative were you? If I'm that far in the negative (don't think it will be a problem as I'm scared I'll actually be pushed into a ch 13), I'm going to cancel my gym membership, our cable and anything else I can just so I can keep the car. I know it's probably easier said than done

[IBroke]

on the packet I filled out the only options given were to reaffirm or surrender so I just wrote in "keep paying".

Did you do CH7? If yes, redemption should have been an option as well.

[2live]

Did you do CH7? If yes, redemption should have been an option as well.

Oops, better late than never.....yes, that was the 3rd option I just couldn't think of it. But I took that to mean pay for it now (in full) and redeem it that's why I wrote in "keep paying". Was that right??

Another question, when do I speak with the CU about pending BK and wanting to keep paying on the house and car? I'll be filing late March or early April.

thanks

[IBroke]

But I took that to mean pay for it now (in full) and redeem it that's why I wrote in "keep paying". Was that right??

In the end, you will be the owner. However, the question is going to be:

How much will it cost you? If you REDEEM with a 722 loan or in cash, you pay the market-value for the car, NOT what you're currently owing. If you simply decide to continue your payments (no matter if you reaffirm or not), the car won't be yours until you have paid the entire loan.

Depending on the car, the difference could be a few thousand $s.

Certainly, redemption only makes sense if you owe more than what the car is worth - if not, you would simply continue making your payments..

[2live]

NADA and Kelly BB say it's worth 8500.00 and my balance is 6014.00 and payment only 262.00. so I just want to keep paying as contracted.

Should I inform the CU now about the upcoming filing?

[inpain66]

I was turned down by 722 redemption . I also have the loan with a credit union. They do not always let people keep their cars even if people are up to date on their payments.

[IBroke]

NADA and Kelly BB say it's worth 8500.00 and my balance is 6014.00 and payment only 262.00. so I just want to keep paying as contracted.

That's correct.

Should I inform the CU now about the upcoming filing?

You can tell them that you're planning on keeping the car and making the payments. If you don't discharge any other debt with them and you're current on the car, I don't see a problem. Even a reaffirmation wouldn't be problematic (in case they insist on it) since you're having equity in the car. That's why the judge would probably approve it as well. Your situation is very favorable for this BK since your equity doesn't exceed the allowed vehicle-exemption.