Reaffirming Car?

[Molly430]

So I was discharged 5/12, and today I get a letter in the mail from my lawyer about reaffirming my car. It told me to sign if I wanted to. I want to get rid of my car, and get something new.... but what does this letter mean? I am going to call my lawyer in the morning, just thought I could get some help until then...thanks!

[keepmine]

Don't sign that reaffirmation agreement. It means, you will be liable for any deficiency balance should you default on the auto loan.
If you want to get rid of the car and it's worth less than you owe just surrender it in the bk.

[phoenixrisin]

If you don't intend to keep the car, don't sign the reaffirmation. We put both our vehicles on the petition today, but will stop making payments on one as soon as we get a file#. The lawyer didn't put "reaffirming" or "not reaffirming, but "other", on the petition.

Then in a couple months when they send the reaffirmation agreement, we aren't going to sign it. We will then have at least 2 or 3 payments saved to buy a really cheap car or a down payment for a pretty cheap car.

[hamburgervol]

If you don't intend to keep the car, don't sign the reaffirmation. We put both our vehicles on the petition today, but will stop making payments on one as soon as we get a file#. The lawyer didn't put "reaffirming" or "not reaffirming, but "other", on the petition.

Then in a couple months when they send the reaffirmation agreement, we aren't going to sign it. We will then have at least 2 or 3 payments saved to buy a really cheap car or a down payment for a pretty cheap car.

Doesn't that allow the creditor to repo the car immediately if they so choose or does the automatic stay prevent such?

[Molly430]

??

ok...so i owe $4900 on my car, i have 17 payments left. it has about 120000 miles on it, but is in pretty good condition. i think kelly blue book said its worth about 4000. reaffirm or not? i am so confused, even after being on here for hours looking stuff up about it.

[mamaof2]

Depends on if it is worht it to you, we reaf. our vehicle and motorcycle...we owe just a little more than they are worth, but they are in perfect condition, and we dont want to get rid of them. Everyone's differant!

[mamaluv]

I plan on reaffirming my car...I have 22 payments left. I owe $9600 and blue book on it is $10,600 so I have a little bit of equity in it. And it's at 5.25% so I want to keep it.

[Molly430]

I plan on reaffirming my car...I have 22 payments left. I owe $9600 and blue book on it is $10,600 so I have a little bit of equity in it. And it's at 5.25% so I want to keep it.

Its just so hard, my lawyer isnt much help either. i have some people telling me please dont reaffirm, and some say to reaffirm. Like I said, I owe 4900 on the car and i just look the up the value and its at 5900. I have 17 payments left and have no problem making the monthly payments. my interest rate is also 5.25%, and i dont want to mess that up. i guess i am just confused still...have to more research. thanks!

[zpbk13]

I am in a similar situation. I just assumed I would reaffirm my 2009 vehicle at 1.9% interest. After a BK I will probably not see that type of interest rate again for a long long time. My attorney says not to reaffirm though. I understand the logic but I have a fear that at anytime the creditor bank could come and pick it up. I really like the car, it has a great warranty and I would like to keep it.

On the other hand, we are giving up DH's car. Just trying to figure out if we should not make this month's payment since we are filing next month or say we are going to reaffirm and then not do so buying us probably a little more time to save up some dough for a work care for DH. Sigh, thank goodness for this site or we would be totally lost!

[dogbone33]

If your car is worth the same or more than what you owe (maybe even a little less) I say reaffirm. We have 630 credit score and can't get financed for a new/newer vehicle. Idk why, we had really good credit before we filed.... Banks are so tight right now...

[AfraidOfBK]

i say if u like the car, it sounds like ou have a good rate and no problem making pmts - so keep it...otherwise, do you have the funds to put a considerable amount down on a new car after bk? Or a used car even? Could that money be used elsewhere? I am going to keep my two cars which have no equity but good rates and have served us well...

BUT here is the question- if you do not eaffirm, and simply ride through...can they still come repo the car at any time (even if u r current on payments and have been this whole time?) i know that you can give it up later if you simply ride through, because youve eliminated that obligation to pay from a reaffirmation signing....but if u really need the car...is there a chance youll lose what you really can't afford to lose?

[amalejko]

My lawyer said NEVER sign a reaffirmation agreement. He said as long as you keep making payments, they will not take the car. They want their money, not the car. Especially don't sign the reaffirmation agreement if you intend to give it up. Look at it this way, if you DON'T sign the reaffirmation agreement and keep making payments but then six months down the road lose your job or something, you can give up the car but it CANNOT go on your credit as it was included in the bankrupty. That is how my lawyer and my endless hours of research explained it to me. We have a mortgage and a second mortgage and 2 cars. We are going to keep our home and keep making payments on the cars but will not sign a reaffirmation agreement on anything. You just never know what could happen in the future.

[phoenixrisin]

If you do not reaffirm they can certainly come repo the car - even if you are making payments. It's happened to others on here.

My question is: Do you eventually even have a legal right to the title? I have heard you also will not get credit for making the payments on your credit report.

That it just too much uncertainty for me.

My H and I decided this week we are definately not keeping his vehicle, based on much discussion. He likes the vehicle, but still owes 44 of 72 payments, it's a big gas hog truck, it's worth much less than what we owe, the monthly payments are almost $600, and the truck will have 85K miles and be worth barely $10k by the time the term is over. Plus a car would have less gas, and less insurance. NOT worth keeping.

Considering the factors about your payment, the term left, and the fact that you can afford the monthly payments, why not keep it? To go out and buy a comperable car will cost a lot more than keeping what you have.

Most used cars in my area averaging 10 years old and having around 80-100K miles cost about $6-8K. Considering I would probably have to pay 15-18% intrest, I'd keep it.

[mgmadara]

My lawyer said NEVER sign a reaffirmation agreement. He said as long as you keep making payments, they will not take the car. They want their money, not the car. Especially don't sign the reaffirmation agreement if you intend to give it up. Look at it this way, if you DON'T sign the reaffirmation agreement and keep making payments but then six months down the road lose your job or something, you can give up the car but it CANNOT go on your credit as it was included in the bankrupty. That is how my lawyer and my endless hours of research explained it to me. We have a mortgage and a second mortgage and 2 cars. We are going to keep our home and keep making payments on the cars but will not sign a reaffirmation agreement on anything. You just never know what could happen in the future.

You're lawyer is correct. Signing a reaffirmation agreement will not benefit you, it benefits the lender. We did a ride through on our car and our mortgage. The car has since been paid off and we received the title within 2 weeks of making our final payment.

If you do not reaffirm they can certainly come repo the car - even if you are making payments. It's happened to others on here.

I don't think I have ever read a post here where somebody's car was repossessed when they were current with payments and doing a ride through.

My question is: Do you eventually even have a legal right to the title?

Yes, when the car is paid off you will get the title.

I have heard you also will not get credit for making the payments on your credit report.

This depends on the lender. There is also no guarantee that the lender will report to the credit bureaus if you reaffirm. In our case our loan was from Chrysler Financial. They never reported to the credit bureaus, before or after our bankruptcy. Our mortgage is from a local bank and they reported to the credit bureaus before, during and after our bankruptcy.

[BnkrptcyLwyr]

If you have already received your discharge, then there can be no reaffirmation.

Circular file.

Especially if you don't want to keep the car.

Also, the automatic stay is no longer in effect once you receive the discharge, so they can repo now if they want to (assuming that there's been missed payments, or even if you haven't missed payments there's an "ipso facto" clause in your contract (a default-on-bankruptcy clause)).