To keep it or not (vehicles)

[StaciMM]

Ok... The saga continues.

I'm not reaffirming, and not trying to get another vehicle RIGHT now. Since I don't what I will end up deciding in the end (keep both, go to one car, try to get a different car right after BK, or some other option I haven't even thought of yet) I hate the idea of making a payment that I may not have to.

So-do you think I would have an issue if I put my car payments into a savings account, and if I decided in the end to keep the vehicle pay the 10/1, 11/1, and 12/1 payments all on 12/1? Discharge will be mid Dec. most likely.

Be honest. I don't know if this is a good idea or not. If we did that, and decided to go to 1 vehicle, we'd have an emergency fund. I'm not worried about spending the money-I have a savings account that would take 5-7 days to get the money back to my checking so no spur of the moment transactions could happen...

[soldout]

Ok... The saga continues.

I'm not reaffirming, and not trying to get another vehicle RIGHT now. Since I don't what I will end up deciding in the end (keep both, go to one car, try to get a different car right after BK, or some other option I haven't even thought of yet) I hate the idea of making a payment that I may not have to.

So-do you think I would have an issue if I put my car payments into a savings account, and if I decided in the end to keep the vehicle pay the 10/1, 11/1, and 12/1 payments all on 12/1? Discharge will be mid Dec. most likely.

Be honest. I don't know if this is a good idea or not. If we did that, and decided to go to 1 vehicle, we'd have an emergency fund. I'm not worried about spending the money-I have a savings account that would take 5-7 days to get the money back to my checking so no spur of the moment transactions could happen...

If you are not reaffirming the vehicle (one with a payment) more than likely they (bank) will come get the vehicle. You probably wont have a choice to catch up and get current and keep it...
Although, you might be able to negotiate with the bank and they may take an offer around what the vehicle is worth. They will lose money if they have to repo it and then auction it. (DO NOT, keep paying on the original loan) Tell them you will pay only what the car is worth or they can come get the piece of S***. I would look up and see what your car/cars is worth and call the bank and offer something around that. They should know you are in B/K and may be willing to get you something in writing within a few weeks. I am pretty sure they can come repo the vehicle at any time if they have a perfected lien on it. So get too it... DO NOT, keep paying on the original loan either. Wait until you get that offer in writing...

So if you have already filed with no reaffirmation, dont make the payments and save them. Then, if they take your offer, you have that money saved to put towards it. Do both of your cars have liens?...or do you own one of them? If they both have liens, try making an offer on both of them.

Just my 2c...

~soldout~

[StaciMM]

They are both financed & upside down. I tried to deal, the answer was 'we don't do that'.

If I were to hold & then catch up the payments, it would be before discharge-so before the automatic stay gets lifted they would have all their payments. If they charged late fees, though, those would not have been paid... (Discharge will be mid-December at earliest.) We need 2 vehicles, unless DH gives up his 2nd job then we can 'make do' with one but his income from his 2nd job is more than the vehicle expense so we wouldn't be better off... But, if I get offered a permanent position I may get enough of a raise to make up for his lost income. Won't know that for a month or so though. I'd hate to make payments now, then decide to give up a vehicle! I won't be able to save enough to redeem either of them. (3 months of vehicle payments is about $2600, but the lowest valued vehicle is a FMV of $5-6k, the other $10-11k.) Both vehicles are current, except one payment was due yesterday and I haven't sent it yet.

[soldout]

They are both financed & upside down. I tried to deal, the answer was 'we don't do that'.

If I were to hold & then catch up the payments, it would be before discharge-so before the automatic stay gets lifted they would have all their payments. If they charged late fees, though, those would not have been paid... (Discharge will be mid-December at earliest.) We need 2 vehicles, unless DH gives up his 2nd job then we can 'make do' with one but his income from his 2nd job is more than the vehicle expense so we wouldn't be better off... But, if I get offered a permanent position I may get enough of a raise to make up for his lost income. Won't know that for a month or so though. I'd hate to make payments now, then decide to give up a vehicle! I won't be able to save enough to redeem either of them. (3 months of vehicle payments is about $2600, but the lowest valued vehicle is a FMV of $5-6k, the other $10-11k.) Both vehicles are current, except one payment was due yesterday and I haven't sent it yet.

Even if they had all of their payments, you didnt reaffirm the vehicles on your b/k so that is basically like surrendering the vehicle. Without another loan/agreement I would think that the bank could come get it anytime, whether the payments are current or not...(I could be wrong though) If your bankruptcy gets discharge...then you will not be obligated to pay the bank anymore on them loans. That is what the reaffirmation is for. Unless their is something I am missing I am pretty sure thats how it works...

~soldout~

[TatteredInTexas]

Hi StaciMM,

The way I understand it (somebody correct me if I am wrong), if you don't reaffirm at the filing, the finance/mortage company can ask the judge to lift the "automatic stay" and allow repo preceedings to commence. Also, isn't being current on your payments at the time of filing, one of the stipulations for being able to even consider keeping the vehicle?

We're in the same boat. Two cars, both worth less than is owed on them, but need them to get to and from work (or to find work, in my case).

On the downside, seems like I read on the board (somewhere) that if you reaffirm, then you are stuck with making the payments and if you are late, at any point, they can come get it. If you don't reaffirm and just keep making the payments (as long as they will let you) then, if something happens and they do come get it - you can't be charged for whatever is left after the sale (judgement, which is common), as the vehicle would have been part of the B/K - thus acually discharged.

Personally, we are adding both of ours and not reaffriming the notes. We will keep paying on them, even during the stay, but if they want them... they are more than welcome to come get the pieces of crap.

Hope this helps!

All the best,
Ronnie
TatteredInTexas

[soldout]

Hi StaciMM,

If you don't reaffirm and just keep making the payments (as long as they will let you) then, if something happens and they do come get it - you can't be charged for whatever is left after the sale (judgement, which is common), as the vehicle would have been part of the B/K - thus acually discharged.

Would'nt that right there be a reason to reafirm. I mean if the bank wanted they could repo at any time. That could end up screwing you majorly. They could wait until you have the next to last payment made and come repo it...Then you would be way up s**t creek. My best advice would be to talk to your attorney...You need something in writing saying they will not/can not repo if you want to keep them. Im sure if you keep digging there is something you can do to stay in those vehicles...Don't go by word of anyone...
As far as staying current with your payments...You are in the same boat now than you will be after the discharge...They can still lift the automatic stay regardless if your current or not...Please be carefull..I would hate to see you lose 2600 dollars and then have the bank come repo both vehicles...
I would even talk to your attorney and ask her if she can help negotiate with your bank. I am almost positive the bank will take some offer. Why wouldnt they...They would end up being better off if they did offer you what they were worth...Think about it..
1. Repo Fees they have to pay (anywhere from 200-1000)
2. Auction Fees to list (who knows)
3. Only getting approx. 1/2 to 3/4 what the car is worth...
So in the long run, i am sure it is in the banks best interest to negotiate with you...They know you cant file B/K for another 6 years...If you dont pay,then they will be allowed to place a judgement on you...Or repo the vehicle on the new terms.

Dont trust anyones word...Make sure you have it in Black and White before you are satisfied.

~soldout~

[TatteredInTexas]

They could wait until you have the next to last payment made and come repo it...Then you would be way up s**t creek. My best advice would be to talk to your attorney...

I agree, an attorney should be consulted in matters such as this, and the old adage "If it ain't in writing - it ain't true" seems to hold true here as well.

However, if the bank continues to accept your payments, (just my thinking... I could be wrong) it seems there would be an "implied" willingness on their part to continue with the contractual agreement. Beyond a doubt, if they allowed you to continue payments, then repo'd at or prior to the final payment... this would presumptuously make them an exceptionally good candidate for a civil lawsuit. Again, just my two...

Best advice, as soldout said - talk to your attorney.

All the best,
Ronnie
TatteredInTexas

[soldout]

this would presumptuously make them an exceptionally good candidate for a civil lawsuit. Again, just my two...

Very, Very true indeed!