Reaffirmation Process

[Dannmcg357]

How does this work exactly? I have a truck I am intending to keep which has a lien through a CU. Do I contact them before I file and arrange it, can they object/deny reaffirmation or do they have to go along with it? Reason I ask is it has a little equity in it.
Thanks in advance for your reply.

[Llelxon]

I think you can do it either way. With ours we filed and listed that we intended to reaffirm, then our lawyer contacted them. Our lawyer said we had 90 days to file it.

[HakunaMatata]

I, too, had my attorney serve as a mediator. A reaffirmation agreement has to be consenual (the lender can refuse; although, this isn't typical). Reaffirmation can sometimes get a little uncomfortable with CUs if you have other existing debt you wish to discharge (ex/ credit cards, personal loans). Stay current on your loan (sometimes payment methods change...automatic withdrawals cease or payments need to be submitted to a different department/address).

[Dannmcg357]

I stopped paying the note on my SUV in Dec. They sent a letter of intent to take it if I didn't get current by 2/11. I filed BK 7 on 2/11 and indicated intent to surrender the SUV. Now I am feeling sentimental about the truck and the fact that I paid so much on it, is it possible I could still reaffirm it ? Part of the reason for not keeping it is because I can't exempt the equity in it. I have equity in my truck that I am keeping too.

Man Alabama has the shitiest exemption allowance, 10K home and 3K wild card (6 if married). Sorry just had to get that out of my system.

[HakunaMatata]

You can change your intentions. However, BK isn't a time to be sentimental. BK is strictly business. If you can't exempt the equity and you have alternative transportation, surrendering sounds like the best option. If you reaffirm, you will likely have to bring the loan current and, obviously, continue making payments. You will also likely have to buy back the non-exempt portion. Plus, if you reaffirm, you reinstate personal liability (and any dramatic, post-BK financial change could adversely impact you). Weigh your decision against the big business picture, not feeling.

[Dannmcg357]

Thanks HakunaMatata. I can't reaffirm under the conditions of bringing it current and buying the equity back. It's only an SUV, not the only one I'll ever own hopefully.

BTW, spare those poor dogs some dignity! lol
j/k

[HakunaMatata]

The conditions I presented aren't guaranteed. We have a poster who was able to negotiate loan terms and arrears were placed on the backend of the loan. The only currently known outcome of your scenario is reaffirmation = personal liability.

It's definitely not the only SUV in the world; and, in ten years facing the need for a new transmission, wheel bearings, and an alternator this SUV may not spur sentimental feelings. I live near Detroit. If you need another SUV, I'll find one for you!

Doggone dignity?!! I had to invest $4k into one of my dogs two weeks following my 341. I'm the one who had to BEG to accomplish this. What's so bad about a "Bark, the Hairy Angels Sing" photo? He owes me. Big time.

[Dannmcg357]

Nothing wrong with it! Just yankin your chain, I love to animals spoiled, nice to know I'm not the only one. I'm a long way from Detroit, but if I happen to be in the market again I'll drop you a line.
Thanks again