Lawyer Did Not Include Reaffirmation Of Auto Loan In Chapter 7, Advice!

[lilacs80]

Hi Everyone,

I wasn't quite sure where to post to this question so I post it in here in Chapter 7. We were discharged from Chapter 7 in October 2010.

My husband has car that he kept and is still making payments on. He hasn't missed a single payment throughout the whole process. Once we were discharged, he called them to have them start sending paper statements again. Guess what we found out. They told him no can do. The lawyer we used did not include the reaffirmation of the auto loan into the Chapter 7 and now that our case has been closed and discharged, it's off the record. In order to fix this, we would have to reopen the case.

I contacted my lawyer and he claims we never returned the reaffirmation paperwork to them, which is not true. We got the forms from him via email after I talked to the car loan place and they told me to make sure the car loan gets reaffirmed while we were getting all the paperwork together and waiting for our hearing. My husband signed the paperwork, scanned them, and emailed them. He also CC several people on the email including me. I received the email so how is it possible that no in his office did?

Right now, our lawyer is advising that we shouldn't reopen the case. We should continue to make the payments and ask for a pink slip. That's it.

What my lawyer is suggesting, is that the best way to fix it? I would really like some 2nd opinions here because if he can simply wash his hands by saying he didn't receive the paperwork, which is not true, I'm afraid the advice he is giving me might only be advice of convenience to him.

Thanks.

[disconapper]

Oh goodness, no way would I ever re-open the case. I would follow the lawyers advice, assuming you are current on payments, etc, you should be okay....unless your Lender is someone like Ford Motor Credit that requires a reaffirmation agreement for you to keep the car...

[lilacs80]

Oh goodness, no way would I ever re-open the case. I would follow the lawyers advice, assuming you are current on payments, etc, you should be okay....unless your Lender is someone like Ford Motor Credit that requires a reaffirmation agreement for you to keep the car...

Thanks for your reply!

We have Toyota Financial.

I'm just upset that they dropped the ball, and simply made it our fault by saying they never received the paperwork. I just emailed him a copy of the original reply with all the attachments and people CCed on the email. I've kept every incoming and outgoing email for my record. I want to see what he comes back with. I also asked him what reopening the case entails, but I have no intention of reopening the case.

Thanks again for your response.

[drowning123]

Lilac, just make sure that Toyota still reports positive on your credit report.

[lilacs80]

Lilac, just make sure that Toyota still reports positive on your credit report.

That's the thing, they're not reporting on our credit report. It shows that the car along with all the rest of our credit card debt has be discharged! So it looks like we lost the car.

[NoMoreCards]

Toyota has no obligation to report anything on your credit report, as it was IIB. They would report it the debt was reaffirmed, and it was not. Not really a big deal. The bright side is if anything happens and you are unable to pay for the car, it can be returned to the bank and they can not come after you for the deficiency balance.

[drowning123]

I ditto NoMoreCards.

[lilacs80]

Toyota has no obligation to report anything on your credit report, as it was IIB. They would report it the debt was reaffirmed, and it was not. Not really a big deal. The bright side is if anything happens and you are unable to pay for the car, it can be returned to the bank and they can not come after you for the deficiency balance.

Thanks. I'm just thinking it's going to tough 5 years from now if we want to try to buy a house or another car, they might hold it against us because we didn't reaffirm the car. It looks as though we lost the car in the bk, you know? Is this going to affect us getting a 2nd car or car lease?

[drowning123]

Not necessarily. Auto lenders do look at your car loan history, so your continuing to pay for the car is not all in vain. Keep saving as much money as you can, and in 2 years you can start thinking about getting a house. All is not lost.

[lilacs80]

Not necessarily. Auto lenders do look at your car loan history, so your continuing to pay for the car is not all in vain. Keep saving as much money as you can, and in 2 years you can start thinking about getting a house. All is not lost.

Thanks Drowning123! That is the most optimistic thing I heard all morning! =)

[drowning123]

I'm going through the same thing. I totally understand. I'm 8 months out of bk and I've been asking realtors what are my options and they all told me to wait another 12 months. They do actually have all sorts of programs and once you meet the criteria, you can possibly be approved for a loan. Rates may not be that great, but it's a start and you can always refinance later.

[lilacs80]

I'm going through the same thing. I totally understand. I'm 8 months out of bk and I've been asking realtors what are my options and they all told me to wait another 12 months. They do actually have all sorts of programs and once you meet the criteria, you can possibly be approved for a loan. Rates may not be that great, but it's a start and you can always refinance later.

That's what we're doing right now. We're waiting it out....and in the meantime, trying to rebuild our credit and get everything back on track. It's tough! Trying to save money while paying rent in LA area....it's tough!!!

[drowning123]

At least you know what to do. You'll get there. I'm trying to rebuild my credit, too. It's unbelievable that I got a car loan one month out of bk, and I got that loan because I was always good with car payments. That new loan is helping my scores. I also got a secured credit card from Capital One. I didn't get it in the mail yet, but it's on the way. With those two, I hope to get my scores up to pretty decent numbers in a year.

[lilacs80]

At least you know what to do. You'll get there. I'm trying to rebuild my credit, too. It's unbelievable that I got a car loan one month out of bk, and I got that loan because I was always good with car payments. That new loan is helping my scores. I also got a secured credit card from Capital One. I didn't get it in the mail yet, but it's on the way. With those two, I hope to get my scores up to pretty decent numbers in a year.

Yay!! Sounds like you'll be there in no time!

I just got my card last week!! I got mines from Capital One. It's unsecured...they approved me for $500. It's a start. It's my first credit card since discharge.

I'm working on getting a car loan or car lease, will need to see what's out there. And hopefully, that'll also help boost my score.

[HHM]

Actually, I do not think you can reopen to reaffirm. The reaffirmation rules are pretty cut and dry, it MUST be entered before discharge. Simply reopening wouldn't help.

Don't worry about paper statements etc. Granted, the car company can repo for failure to reaffirm, but I doubt you need to worry about that at this stage.