Not sure what to do. Any suggestions appreciated!

[TatteredInTexas]

Hi All,

In today's mail I received a reaffirmation agreement from the lender on my vehicle. They want me to reaffirm at the amount remaining on the note as of my CH-7 filing date (October 6th). The problem is that the amount owed $6,200.00 is about $3,000 more than KBB says it's worth (not counting all of the mechanical problems). They want the first payment 9 days after our 341 hearing is completed.

Now... here's where it gets sticky for me.

Right after I filed our B/K petition, my wife decided she wanted a seperation. Because I have no family here, I had planned to move back to my hometown right after the 341 meeting. (It might be worth mentioning that I will be unemployed temporarily upon moving, and not sure how long it will take to find another job, but will have enough cash to make 2-3 payments.)

I don't want to reaffirm, and would rather just pay the payments and keep the vehicle. However, Texas does not support that type of payment plan.

Since I will need a vehicle to find a job when I return home, I can't afford to let this one go back, but don't really want to reaffirm it at the requested amount. And, not sure that the Trustee would approve it anyway.

Also, I was current on the payments at the time of filing, but am now 6 days behind on this month's payment.

My question... Should I send this months payment, and see what happens, or just hold up until the 341 and go from there? I don't really think they want the vehicle, but then again... I could be wrong and may end up losing it if I don't do something.

Any suggestions would be very much appreciated.

Filed CH-7 (October 6th)
341 Meeting - Scheduled Nov. 21st

Many thanks!
TatteredInTexas

[StaciMM]

If you don't make the payments, they can't come & take the vehicle unless they file a motion to lift the stay. There is a good chance they won't, and will just wait until after the discharge to contact you regarding the vehicle. (They can't really contact you directly now, but if they were to file a motion w/ the court you would be notified.)

I know that doesn't really make your decision any simpler! If you don't make the payments, do you think you'd be able to save enough to put that into a basic vehicle after discharge?

[sunshine08]

You will receive many offers on getting another vehicle. Newer and in better shape probably. Interest rate will be higher but? You have several options right now, take your time and consider what you want to do. Have you contacted 722 Redemption. I have gotten 3-5 letters a week from car dealers since filing. Talked to a couple car salesman and you can get a reasonably new or new vehicle with decent financing.

[txfencer]

texas reaffermation

I have made my 341 and no one showed up on either of our vehicles.I called financial and were told to continue making payments.I haven't decided on my truck but don't have funds to do anything other than that, at this time.Citifinancial told me they weren't allowed to contact me or send payment notices,or even allow us to see our files on line.That being said my attorney said as long as we made payment we could keep the car and citi did confirm that without reaffirming, but i don't know if they will show up as positive on the credit report. I'm in Texas as well. good luck

[bkfiler]

staci,

i was reading my attorneys documentation he give to everyone and the dang thing says (to my suprise) that you have to keep making payments even during the bk process or they can take the car, house etc away from you.

i wonder if what they are really trying to to us is that if you dont make a payment and wish to keep the car that after the stay is lifted they have the right to come get it if they want to since you didnt pay. maybe just safe advice?

[TatteredInTexas]

Thanks all for your kind responses.

The biggest problem I will have with getting something else (besides lack of funds), is that I am only working for a temp agecy at the moment, thus a short time on the job. I know lenders like to see a good job history, so this would hurt me. Then with the move upcoming, I will be totally unemployed until something else comes along.

Bkfiler, you make a good point. Yes, the payments are supposed to be made during the B/K process on any property you plan on retaining (reaffirming). That also is a concern since I am now 7 days past due on the October payment.

I still think I'm going to wait until the 341 and see what happens then. By that time, maybe I can get them to work some kind of deal with me.

Thanks again!
TatterdInTexas