How do I know my car loan was reaffirmed

[namartin3]

Hi everyone, I have a question. Our ch7 was discharged in january, and when we filed, we told the attorney we wanted to keep our car loan, and continued making payments. However, I just pulled my credit report and noticed the status for the car loan is listed like all my other debts as "chapter 7 discharge" with a zero balance.

Now im wondering if the loan was ever reaffirmed. Maybe since Im current and making payments, they havent taken the car back? Other than the paperwork I signed when I filed the ch7, I have never signed anything related to the car loan. Does anybody have any advice? Is there somewhere on pacer i can go look? Its the weekend now and the bank and attorneys office is closed. By the way im in Michigan if that matters.

Thanks.

[csonly]

A judge has to approve a reaffirmation. If you told your attorney you wanted to keep the car, he probaby just told you to stay current so that don't repo. The creditor would have to send a reaffirm first and again, that all has to be done before discharge and through the judge with a hearing. Most times, unless you have a lot of equity in the car, a reaffirm is discouraged. My attorney told me he does not recommend it and he also said the courts do not as well. It puts you back on the hook for that loan.

[namartin3]

OK I just went through all my paperwork, and the only thing i signed was a "Statement of Intent" to reaffirm the loan when I filed my chapter 7. I never received/signed any docs from the credit union. Also, I never went to any hearing other than my 341. So I think its safe to assume I never reaffirmed this loan correct? Also, is it a big deal that i said I intended to reaffirm it but never did?

[BrokeinMD]

Hi Na - Along with what everyone else has advised, what you're doing is called a ride-through. As long as you're current, you keep the car, and the bank won't take it, the debt is discharged. However, if you default, the bank can repo the car. If you let the car get repo-d, you're not responsible for the balance of the loan, as the debt's discharged. You're not eligible to get the payments back, as you have the vehicle. You need not worry about this, as you're paying for the vehicle, and driving it. Hope that makes sense.

[gatekeeper]

Did you look in pacer, the document would be posted there if it been filed by the courts. Have you received your discharge notice yet, if not that means that your bank justed updated your credit report too early (which is no harm by that). Once the reaffirmation is signed and approved and after your discharge notice is issued and once your case is close, the credit union that has your car will then update the credit report back as it was before your discharge.

[namartin3]

Thanks for all your replies, I appreciate it. There was nothing in pacer other than my "statement of intent." Yes, I was discharged in Jan, and in Feb the credit union updated my credit report. One final question, if i decide to let them take the car and stop making payments, how long do you think before they repo it? Thanks again for all your replies.

[BrokeinMD]

That varies from lender to lender, Na. Maybe you can dig up more info about repos in your state by searching the repo tab on this forum.