help! Discharge Hearing Tuesday / Reaffirmation Agreement just received

[BrokeStudent8]

My discharge hearing is scheduled for Tuesday the 17th. Last Monday, I called up the credit union that has the lien on my car and asked if they are supposed to send me a reaffirmation agreement. The woman was a complete *****, told me that they sent me one already, so I asked her to verify my address. Even though I've received plenty of advertisement-related mail & regular statements, she said they didn't have my suite # so that's why I must not have received it. Funny that all the other mail had the correct, full address. She had the nerve to get lippy with me, and said that my discharge is scheduled for the 17th and they need to have the agreement signed & returned to them before then. I told her that it's just the hearing, not the discharge, but if it's so urgent she needs to FedEx it to me. Of course, she didn't & I just received it today. My question is, I have to go to my discharge hearing on Tuesday. My sixty days aren't actually up until Monday the 23rd. What am I supposed to bring to the hearing? The blank reaffirmation agreement? I can sign it obviously, but the part where the credit union's representative is supposed to sign is blank. Do they have to file the agreement with the court, or do I?

[bkfiler]

i thought they signed it and sent it to you. thats how mine was. then they said file it with the court.

are you sure you want to sign it, cant you just keep paying for the car and keep it? not sure of your situation, etc.

for clarity, you 341 is coming up in january 17th and your final day for objections is feb 23rd?

[ODDBALL]

Okay!!! Are you sure that you want to reaffirm your vehicle? About how much do you owe on it? If you reaffirm, should you decide that you do not want it, or something happens that you cannot keep it, you become liable for the balance remaining. However, if you do not reaffirm, then should something happen, you are NOT responsible, and it will be included in the bankruptcy. I had a similar situation. My reaffirmation agreement DID NOT come until AFTER my discharge. It did not matter, as I only owed about $1600 on the vehicle. The problem with not reaffirming is that they stop reporting to the credit bureaus. But, once the balance is paid in full, they WILL note the zero balance, and send you the title, as well as a payment history should you decide to purchase another vehicle. Have you spoke with your attorney, or did you file pro se??? IF you only owe a small amount, it may still be worth reaffirming, just to have it reported to the credit bureaus. BUT, if it's an older vehicle (and you still owe a lot) and the engine dies one month from now, and you have reaffirmed, then you are STUCK LIKE CHUCK. Otherwise, it goes away with the BK. Hope this helps!!! Good luck.

[BrokeStudent8]

My 341 was back in November. This is a "discharge hearing / reaffirmation hearing" coming up on the 17th. My sixty days will be up on the 23rd.

I really thought it would be in their best interest if they signed it, but I guess they want me to sign it, send it to them and then have them file it. I'm in TX, and from what I understand, here you must sign a reaffirmation agreement, surrender or redeem the property. I'm about even (not upside down, not ahead) and I want to keep the vehicle. I filed pro se, which is why I have to go to the reaffirmation hearing (apparently if I had an attorney I wouldn't have to.)

[bkfiler]

i just want to make sure you know some people just keep making payments without reaffirming and as long as they do so they get to keep the vehicle and are not responsible for the payments. meaning they can stop paying anytime without any harm to their credit record.

a side question for me has always been what happens if you dont reaffirm and wreck it lol. who owes for the damage now hehe. what if you stopped paying insurance too hehe and they hadnt been notified yet.

[BrokeStudent8]

Thanks bkfiler I would've preferred to do that, but my NOLO book said that you can't do that in TX and that you have to reaffirm, surrender or redeem. The c.u.'s letter (the one that just arrived today w/the agreement) said that they do not accept voluntary payments on secured items, and that I must reaffirm, surrender or redeem. I wish I could just make voluntary payments; I despise that credit union.

What do I do though, about the reaffirmation / discharge hearing? Show up with the blank agreement?

[bkfiler]

i dont know. i myself would probably not keep the vehicle - depends on the amount owed and the payments im gonna pay.

i would call them back and ask why they didnt sign it first. its not like they let you change the terms and they need to see it again. i wonder if its got to do with them showing up at the meeting (if they are going to). terms are terms, i dont see why they would bother doing it though.

as for texas, you cant just keep making payments if the owner lets you? id be suprised to hear that they wouldnt let you do that given the ill let you have it versees ill make payments on it scenario.

anybody else know this about texas?

[BrokeStudent8]

It's a 2003 Jetta, 81k miles. I owe $10,300 on it.... it needs a new transmission, but I bought an extended warranty when I purchased the car & it's covered for just a $100 deductible. It's in great shape (I'm the original owner and I've taken great care of it... the transmission problem was b/c my roommate screwed it up when I let her drive it for a while.) But I owe what it's worth. The thing is, it would be rather difficult for me to get a new car... I'm unemployed at the moment, and I have nothing I could use as a down payment.

[bkfiler]

whats the monthly payment

[BrokeStudent8]

$389.62, 8.9% APR. I can probably pay off the balance by the end of the year... I wanted to redeem it, but I can't come up with the lump sum in enough time.

[bkfiler]

i hope someone chimes in about wether or not you can just make payments if the creditor lets you in tx. i never heard that before.

[renee49]

This sounds like you don't HAVE to reaffirm. You might want to check with a free consulation attorney or 2 or 3 before you sign that agreement:

This is from this website: http://www.txs.uscourts.gov/Bkcyforms/chap7.htm

In certain jurisdictions, secured creditors may retain some rights to seize pledged property, even after a discharge is granted. Depending on individual circumstances, a debtor wishing to keep possession of the pledged property, such as an automobile, may find it advantageous to "reaffirm" the debt. A reaffirmation is an agreement between the debtor and the creditor that the debtor will pay all or a portion of the money owed, even though the debtor has filed bankruptcy. In return, the creditor promises that, as long as payments are made, the creditor will not repossess or take back the automobile or other property. Because there is a disagreement among the courts concerning whether a debtor whose debt is not in default may retain the property and pay under the original contract terms without reaffirming the debt, legal counsel should be consulted to ensure that the debtor's rights are protected and that any reaffirmation is in the debtor's best interest.

If the debtor elects to reaffirm the debt, the reaffirmation should be accomplished prior to the granting of a discharge. A written agreement to reaffirm a debt must be filed with the court and, if the debtor is not represented by an attorney, must be approved by the judge. 11 U.S.C. § 524(c). The Bankruptcy Code requires that reaffirmation agreements contain an explicit statement advising the debtor that the agreement is not required by bankruptcy or non-bankruptcy law. In addition, the debtor's attorney is required to advise the debtor of the legal effect and consequences of such an agreement, including a default under such an agreement. The Code requires a reaffirmation hearing only if the debtor has not been represented by an attorney during the negotiating of the agreement. 11 U.S.C. § 524(d). The debtor may repay any debt voluntarily, however, whether or not a reaffirmation agreement exists. 11 U.S.C. § 524(f).