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    #1

    Reaffimation Question-Car

    So we filed an "Intent to Reaffirm" my car loan.

    What if I do not want to sign? (I don't.)

    I told my attorney that unless my lender offers an amazing deal (which is highly unlikely), I have no intentions on reaffirming the debt. He said we would file the intent regardless because it buys us time.

    Any insight?
    Chapter 7 Filed: 04/21/2011, 341 Meeting: 05/31/2011, Report of No Distrubution: 06/02/2011, Discharged: 08/03/2011, Closed: 08/10/11
    Tags: None
    #2
    Most lenders don't need you to sign a reaffirmation in order to keep the car so long as you stay current and maintain insurance. Who's your lender?

    If you want to know right now what they're going to do, you can call and ask them what their policy is regarding bk and reaffirmations. If you want to remain anonymous, call from a phone not associated with your account.

    Oh yeah, not signing after indicating an intent to reaffirm doesn't matter. I think it's the smartest way to do a ride-through on a car.
    There are two secrets for success in life:
    1.) Never tell everything you know.

    Comment

      #3
      Thanks for the response debee.

      Good to know that I do not have to sign because I have absolutely no intent on doing so, it's not a good loan, and given the opportunity to be free of it with the bankruptcy is an opportunity I can not miss. Okay, unless the planets align and I receive an offer with a much lower payment and rate and shorter term, course we all know that's not going to happen.

      My attorney filed the intent to buy time and see what the lender comes back with. My loan was originally with CitiFinancial, great lender, no problems then it was unfortunately sold to Santander, it's been horrible ever since, from payments posting to the wrong account, not receiving statements, strange and unexplained fees on the account etc.

      I did speak with Santander, they called about not receiving April's payment. I informed them of the bankruptcy filing and that an Intent to Reaffirm was also filed. I did not state that I would agree to reaffirm, only that it was filed. They said they would work it out with my attorney, I haven't heard from them since. (I know they are not allowed to contact me).

      My attorney said that they have worked with Santander before, he said above anything else they are slow moving at getting paperwork in etc.
      Chapter 7 Filed: 04/21/2011, 341 Meeting: 05/31/2011, Report of No Distrubution: 06/02/2011, Discharged: 08/03/2011, Closed: 08/10/11

      Comment

        #4
        Do you intend to keep the car or not. If yes, you need to stay current on payments. So, if you default DURING the Bk and don't reaffirm, the car will be repo'd.

        Unfortunately, with cars and other personal property, an "intent" to reaffirm is not enough. They can repo the car because of the BK. Ride through is not, technically, an option any more for cars...but many lenders allow it. But if you miss a payment during or after the BK, the car is history.

        Comment

          #5
          Oh yeah, and if you call Santander and it turns out they will repo without a reaffirmation, you have the further option of signing one and rescinding within the allowed time (60 days from it being filed or your discharge, whichever is later) if you need to buy even more time.


          edit to add: I did a little search on Santander and couldn't find any evidence that they require reaffirmations. Quite the opposite. Just make sure you call their bk department if you want to ride through.
          There are two secrets for success in life:
          1.) Never tell everything you know.

          Comment

            #6
            Thanks debee! I've heard the same about Santander and reaffirmations.
            Chapter 7 Filed: 04/21/2011, 341 Meeting: 05/31/2011, Report of No Distrubution: 06/02/2011, Discharged: 08/03/2011, Closed: 08/10/11

            Comment

              #7
              HHM: I am also doing a ride through after discharge. What if I lower my auto insurance to liability only? If I get into a wreck and the car is totaled, then could the lender come after me even if I did not sign a re-affirmation agreement? Would they even bother taking the wrecked vehicle for scrap?

              Comment

                #8
                If the wreck was "accidental" . it shouldn't be a problem. The issue is probably what sort of insurance are you obligated to maintain. If the lending agreement requires full coverage and you reduce the coverage to liability only, the lender certainly has an argument that you should be responsible for the loss due to breach of contract of the insurance terms. Keep in mind, BK only discharges CLAIMS that exist at the time of filing BK. The only claim, at time of filing, that the lender has is the claim for you to repay the loan. If, after the BK, you lower the required insurance coverage and get in an accident, the lender certainly has an argument that its claim is post BK.

                BK doesn't necessarily VOID the contract in mass, it discharges claims existing claims against you.

                Comment

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