Damaged vehicle have to reaffirm?

[JGra]

Me and my wife were trying to decide whether or not to reaffirm our vehicle. Its high interest and high principal. Only problem is we took it up exactly 72 days before filing bankruptcy. Our lawyer is leery about not reaffirming saying that the car company could try to claim fraud even though we needed the vehicle, our other vehicles were pretty broken down and we even traded one in for it.

Anyway, after speaking to the car company they assured me that no fruad would be claimed etc etc, lawyer still leery because she said for all we know that person in the car company's bankruptcy dept is a minimum wage worker that doesn't really care what happens. Because we were already in the process of filing bankruptcy just hadnt filed until we did. So we got the car knowing we were filing, but have had every intention on keeping it until I've done research on the benefits of letting it go.

Last night, my wife was rear ended in a hit and run. The back of the vehicle is pretty bad, yet to be estimated, but we will be out a 500$ deductible if we go through with the claims process.

If we do not reaffirm, and let them take back a damaged vehicle, can they come back on us for that? Our lawyer seems to really not want to talk to us anymore she has a lot of clients and I guess we've taken up to much of her time...

[justbroke]

There is nothing that they can do. People have purchased vehicles 30 days before filing without an issue. Your biggest decision will be whether you want to keep the vehicle by reaffirming or attempting a ride through.

They won't take back the damaged vehicle though. They will file a claim with your insurance company to get it repaired. Usually "they" will pay the deductible for this.

Just make a decision on what you want to do, and politely demand that your attorney represent your interests and desire.

[BrokeinMD]

Hope your wife is okay! If you have the other guys insurance info, you can avoid going through your own collision insurance and get the other guys insurance to pay the repair bill 100%. If you go through your insurance, they'll pay you less the $500.00, and the other guy's insurance will reimburse you the deductible. Some insurance company's, though, if yours is one, will pay the whole thing in a 100% liability on the other guy, and then they subrogate to get the $500.00 off the other guy. Speak with your insurance company's claim adjuster and see how they'll handle it. Good luck!

[justbroke]

FYI, I didn't have luck getting my deductible when my vehicle was hit from behind! Took 9 months and GEICO finally said that they couldn't collect it. I would suggest going through the "at fault" person's insurance company. Just from my experience.

[BrokeinMD]

JustBroke - Geico being your carrier or the other guys? If they couldn't get it, you could have called the at-fault's adjuster and got it yourself. There's good claims adjusters, bad ones, and lazy ones, good companies that take care of their insured, and some companies that need to be sued to pay their insured...I used to work in the field with them all the time.

[justbroke]

GEICO was mine and the at-fault's was Nationwide.

[JGra]

Just wanted to point out as I said in original post, it was a hit and run. No info on the person.

I have USAA insurance and already started a claim process, just havent decided how we want to handle repairs if at all. Got a 500 deductible I pay and thats it, insurance said they will pay my wife pain and suffering, which she is having pretty bad whiplash. USAA is a very good insurance company and from everyone we spoke to we won't have a problem with them paying up either for repairs or pain and suffering / medical bills for my wife. Has 10,000 coverage on medical for the incident.

It was on private property which police said is considered no fault in the state of KY. So even though it was a hit and run the guy wouldn't have gotten at fault anyway apparently so the cop said.

Im just wondering if I do not reaffirm would the car company be able to come on us for the vehicle damage. Or if anyone thinks it might be a bad idea to not reaffirm due to the circumstances and the short time period, 72 days, before bankruptcy filing.

[tcreegan]

Hi JGra,

Hit and run, so no "other guys insurance" right?

Agree w/ justbroke, seen lots of folks here on the forum change up cars right before a BK...seems like unsecured debt is the bigger issue.

That said, was everything you put on the loan app true and correct? That is going to be the creditors first stop if they want to claim fraud.

Another CYA move would be to reaffirm, have your attorney NOT sign-off on it, go to court and admit it is a hardship, BK judge denies reaffirmation. Now you contend that you intended to keep the car post-BK, you tried to reaffirm the loan, ...makes it tough for the lender to prove fraud.

Whatever happens, good luck w/ it, let us know how it all turns out!

Tom in Colo

[BrokeinMD]

What your asking depends if you want to keep the car or let it go. If you want to keep the car, get it fixed, and add the car repair company as a creditor to your petition for the $500.00.

Is the $500.00 50% of your property damage deductible for hit and run? My collision policy with State Farm has a $500.00 deductible. I had some guy swipe my car and leave in a parking lot. My insurance company dropped my deductible to $250.00 in the case of hit and run. But, they may not release your car to you without getting all the money. I would also see if the claims adjuster would speak with the repair people and negotiate the payment with the repair people as payment in full. That is, if you want to keep the car. You may also want to talk to a personal injury attorney anyway, since your wife is submitting a medical claim. Good luck to you!

[BrokeinMD]

JustBroke. How long ago did this happen? Depending on your state's statute of limitations, it may still be worth pursuing trying to get your deductible out of them, unless, of course, you already settled with them. That's a good question for an attorney, which I'm not. I just was a claims coordinator for them years ago. I still like the work, though. It's very gratifying helping people not to get screwed over! LOL

[debee]

... reaffirm, have your attorney NOT sign-off on it, go to court and admit it is a hardship, BK judge denies reaffirmation. Now you contend that you intended to keep the car post-BK, you tried to reaffirm the loan, ...makes it tough for the lender to prove fraud.

Minor point: Don't try this if your lender is a credit union. The undue hardship rules don't apply the same way and so long as your attorney represented you during the negotiation of it, the reaffirmation will be entered when it's filed. The lawyer doesn't need to certify that you can make the payments & there's no need for a judge.

[tcreegan]

Hi again JGra,

would the car company be able to come on us for the vehicle damage ...not unless you planned the accident

An accident and changing your mind is not fraud.

Minor point: Don't try this if your lender is a credit union. ...or not so minor debee! Amazing to me, the Banks have huuugggee amounts of $$$ for lobbyists and w/ a fraction of this, the CU lobby gets cut a special deal in the BK law. Talk about effective. Then you have the membership agreement fine print, cross co-lateral clauses, ...I liked ACH's description of CUs ..."The ankle-biters of the financial world"

But don't forget....no matter who, a reaffirmation can be rescinded w/in 60 days. They are strictly voluntary.

Tom in Colo

[JGra]

Well it confuses me bc the way my lawyer is acting. It's not credit union its americredit now owned by gm financial. We just barely made it into a chapter 7 according to her. So she said they might see it as a last minute debt to get into a 7. Would not reaffirming make the trustee possibly dismiss the case? Our meeting of creditors seemed to go smooth as silk. And he said no asset case but then sounded like he said no asset base with review. But we didn't have our title with us so figures that's what he meant. I want to keep makin payments and keep the car for now bc it'll be at least half a year till I feel comfortable gettin a new one. Really only got this one bc we needed a vehicle and It was just about the only one we seemed able to get financed or so we were led to believe by the dealership.