Reaffirm Car

[AshShep01]

I signed paperwork to reaffirm my car loan, and sent them off to the courts. I have a hearing in June so the judge can make a decision on what should happen with my auto loan.. Has anyone every been through this?


Filed 02.15.2009
341 Meeting 03.25.09

[BK2008]

Depends on the car, it's value, what you owe on it, how much your payments are.
I reaffirmed my car loan, it was approved, but then, I only owed 7K on it, and the payment wasn't a hardship.

Please state your numbers.

[AshShep01]

Reaffirm Car

I currently owe about $16,000 on my car bought it 2 years ago. I have never been behind on any the of payments. I am current up to date.... Should I start looking for another car at a buy-here pay here place. Is there a possibility that they courts, might order a repo? Its the only transportation that I have...

[BK2008]

How long is the term?? What are the payments? Are those payments a stretch for you?

Are you trying for a 7 or 13??

Of you were considering surrendering it in BK, this would be the time to go buy something cheap and reliable, before your credit takes a serious hit (if it isn't already tanked).

[drowningNdebt]

I highly doubt it. You need your car for transportation to and from work. As long as the payment is unreasonable like $550 and up you should be fine.

[AshShep01]

Reaffirm Car

I am almost postive that my credit has taken a negative hit. There are still some pretty relaible by here pay here places where I am located. My payments are $440 a month. I have another 4 years on the life on the loan. I am filing CH 7, I am just nervous that the judge might order a repo.

[relief13035]

I signed paperwork to reaffirm my car loan, and sent them off to the courts. I have a hearing in June so the judge can make a decision on what should happen with my auto loan.. Has anyone every been through this?


Filed 02.15.2009
341 Meeting 03.25.09

Oh did I ever go through it. Let's just say I am officially un-reaffirmed and happy about it now.

[AshShep01]

Oh did I ever go through it. Let's just say I am officially un-reaffirmed and happy about it now.

--------------------------------------------------------------------------------

Chapter 7 filed 10/21/2008
341 - 11/26 went smooth NO ASSET
Last day for objections 1/29/08 - living in BK limbo
Took 115 days after 341 - Finally DISCHARGED 3/25/09


Did you get to keep your car un-reaffirmed?

[TEW]

Oh did I ever go through it. Let's just say I am officially un-reaffirmed and happy about it now.

--------------------------------------------------------------------------------

Chapter 7 filed 10/21/2008
341 - 11/26 went smooth NO ASSET
Last day for objections 1/29/08 - living in BK limbo
Took 115 days after 341 - Finally DISCHARGED 3/25/09


Did you get to keep your car un-reaffirmed?

You stand a better chance of losing the car if you try to reaff the loan. if the Judge denies the reaff there is a very good chance the bank will take the car. If you do a ride through there is a very slim chance they will take the car.

[AshShep01]

You stand a better chance of losing the car if you try to reaff the loan. if the Judge denies the reaff there is a very good chance the bank will take the car. If you do a ride through there is a very slim chance they will take the car.

--------------------------------------------------------------------------------

Chapter 7 07/30/2008
341 09/17/2008 FICO 635
Automatic Discharge of Debtor - Ch. 7 11/21/2008


Do you think that I should rescind the agreement?

[BK2008]

Or if you don't get to keep the car either by reaffirm or ridethrough (some lenders REQUIRE it, or they'll taje the car), once you file, you might get another one thru 722 redemption. Look into that option, see if it might work for you.

Personally, I'd be looking into replacing it. I had a $579 a month payment, an knew there was no way I was going to be able to keep up on that for another 5.5 years.

[AshShep01]

Yeah I am currently looking into getting another car. And rescind the agreement, send in a written notice to the court. But at least I know what I am getting with my car.

[BK2008]

I think you can rescind your agreement right up to the time your case is dismissed, so keep an eye on that clock, or you will be stuck.

[NoMoreRed]

Look into 722 Redemption. Your payments may possibly come down. Granted, with a 722 Redemption the interest will be high, but you may end up paying lower payments and less total over the life of the loan since the value would be crammed down to the current market value of the car.

[AngelinaCat]

Hi Ash: Welcome to the forum. A basic guide to what you are faced with is this:
1. You reaffirm the loan because right now your job is stable and you know you will be able to make the payments. Then BOOM! Something happens and you CANNOT make the payments. Then the court procedures follow and by and by you end up with a judgment for the difference between what you owe on the car and what the Lender has sold it at auction for.

[PLEASE do not gloss over this item about the court procedures. There are MANY steps involved, and I suggest doing a SEARCH on my nickname or my husband's nic of 'AngelinaCatHub' regarding 'reaffirmations' 'car loans' 'co-sign' 'repossesions' and a whole bunch of other suggestions. We have been there and done about everything possible.]

2. Having said all of that, if you do NOT reaffirm your loan and keep making payments on time and as you regularly do, most lenders won't bother you and will leave you alone. Should you have to walk away from the loan and vehicle, you will NOT be responsible for the difference and can discharge it like any other debt.

You MUST be on time with your payment. If you want to keep the car, don't even think about being late or missing one, or else you will probably be toast.

If you are having payment troubles I would consider surrendering it, and finding a good used vehicle that provides basic transport.

Good luck to you.