Reaffirmation update (kind of scary)

[SunshineGal]

If you, USAA, and your attorney all sign the agreement than it should go through. Does your schedule J show a negative disposable income? If so, than that is probably the reason for the undue hardship. Our attorney wrote that we would budget through reductions in other expenses.

Also check your exemptions carefully, is your car fully exempt? Did the trustee question the value?? Be sure to ask your attorney before you pay off the car. Finally, I doubt USAA wants the car back, they would rather have the cash. Worst case, they will probably allow you to pay it off.

Good luck and keep us updated.

SG

[Alldayer]

USAA stuff

I had a car loan with USAA, we didn't reaffirm. We never missed a payment and they never came and got our car. They sent a title when the payments with done. They do NOT want your car, stay current and they CANNOT take your car, stop paying and they will.....easy as that

USAA shuts down a lot of things while bankruptcy happens to it's customers. It tool 10 years to finally get another credit card with them so I could start using USAAmobile. I was able to keep car insurance and homeowners insurance but they didn't allow us to have a checking account. They even wouldn't allow my kids to have the teen accounts.

However, after 10 years, I finally have another credit card with them, checking and savings, teen accounts, USAAmobile. They are a very good company and it was frustrating for years having to wait until bankruptcy falls off before they would consider doing "Full" business with me again. It's like getting an American Express card after bankruptcy....not happening. I finally got a Costco American Express after 10 years too....damn every year trying to get an American Express and being denied.

I also suggest FREEZING your credit at this time after bankruptcy. Freezing your credit profile is cheap ($0 - $10 one time fee up front) and then someday (maybe years) you can thaw your credit again for 1 day or 30 days, and try to get some credit cards in your name after bankruptcy. It is VERY difficult to find the links for the CREDIT freeze. If you pay a monthly monitoring service you are getting RIPPED off....you don't need it. If you have a freeze on your profile NOBODY CAN OPEN CREDIT DURING THIS TIME, so nothing to MONITOR!! lol.....

CREDIT FREEZE INFORMATION:
I can't post a link yet so it's at clarkhoward(.com)
Then do a search for "credit-freeze-and-thaw-guide"

[AngelinaCat]

Our reaffirmation experience.

We live in Florida, but the Credit Union that we do business with is in Ohio, if that makes any difference.

We have a 2004 Volkswagen Jetta that we had about 11 months left to pay on, so we decided to reaffirm it, because we wanted to stay with that CU,('Hub had been a member for almost 40 years) and this was a requirement from them. For us it was not a hardship because we had already been dedicating 'Hub's pension to that payment. Our attorney never discussed an option of doing the 'ride-through' with us as we would have explained from the beginning that we wished to stay with the CU.

The attorney printed out standard forms for Florida, and we filled them out and signed them and sent them off. Then we received word from the BK department of the CU, that they would be sending THEIR forms, and we would have to fill them out, have them notarized, and send them back, at which point they would present them to a judge in their district, Dayton, OH. We did all this. and the reaffirmation was granted for us.

None of this was questioned by our trustee or the judge. We are in the Jacksonville portion of the Middle District. Pikaroth, you probably are in the Orlando area. We continued making our payments as we normally did while in BK and everything turned out fine.

I think the confusion may be because most of the time, it IS in the best interest of the debtor, to not reaffirm. By reaffirming a loan, you are telling the bank that yes, you will be continuing to make the payments, on time as usual. If, God forbids, some catastrophe happens and you are not able to keep making payments, the car can be repossessed and sold at auction. Whatever amount was left on the loan that was not satisfied by the amount it sold for at auction, that amount is what you will be responsible for.

In a 'ride-through', you keep making the payments as usual, and if the unthinkable happens, and you can no longer pay, and the car is repossessed and sold, you WON’T be held responsible for the difference.

It appears that BrokeinMD got a very good deal with her attorney’s strategy because the bank’s requirement for a reaffirmation was satisfied, and the judge specifically ordered that the bank could not repossess her car if she fell behind in payments.

[jennilynn]

Before the laws changed in 2005, there was the ridethrough option. "Retain and pay" is another term for it. After the law change, the reaffirmations became a requirement... however some banks/lenders will allow a ride through, you just don't fill out the paperwork. In our district, we've seen Ford will take a car that is up to date if you didn't attempt a reaffirmation.
That being said is why attorneys will have the debtors attempt to reaffirm and why many a judge will not order them reaffirmed. You as the debtor have complied with your requirement to reaffirm. It's not your fault the judge said no. you keep paying, you keep it. You don't pay, they take the car, sell it for thousands of dollars less than the balance owed, you still owe NOTHING. You reaffirm and the judge approves, you don't pay, they take the car, sell for thousands less than the balance owed, YOU OWE THE DIFFERENCE.

It's likely the car lenders will let you keep paying on it if the reaff is denied; they really don't want to pay to repo the car, sell it for less and then be out all that money. If you keep paying, that's more money to them.

[pikaroth]

I want to again thank everyone for his and her responses. I admit to feeling a lot better now than I had over the last couple of days.

Again, thank you all for the wide variety of information and kind words!

[AngelinaCat]

I want to again thank everyone for his and her responses. I admit to feeling a lot better now than I had over the last couple of days.

Again, thank you all for the wide variety of information and kind words!

That's good to know that you are feeling better. Please keep us informed as to how you case goes.

[pikaroth]

Instead of a new topic, just going to update this one. I'm on PACER as I type this, and it appears(?) the reaffirmation was denied, but then the listing under it concerns the filing the reaffirmation. Here is what is coming up:

First it has 2/28/11 stating that, "Reaffirmation Agreement Between Debtor and USAA..." goes on to describe vehicle, how much is owed, monthly payments, etc.

Next we have 3/1/11 stating, "Order Conditionally Denying Reaffirmation Agreement (related document(s) 10). Signed on 3/1/2011 (person's name here (don't want to post it just incase)) (Entered: 03/01/2011)

However, the most up-to-date entry is on 3/2/11 stating, "Debtor's Statement in Support of Reaffirmation Agreement with USAA Schedules I and J an dReaffirmation Agreement Explanation Filed by <lawyer's name and info> on behalf of <my name>. (Entered: 03/02/2011)

That's the most up-to-date information PACER has. I almost want to laugh, I literally go between completely calm and not scared about this at all to freaking out like I was when I first even thought about BK.

My 341 is coming up fast, and I so hope it goes well. I am scared to death they will ask me something I don't know or, oh, that's another topic.