Reaffirmation question

[runninfree]

When I filed on May 31st, I wanted to avoid any mistakes or missed documents so filed the entire BK packet together. Tax returns, paystubs, and Statement of Intentions. A week or so ago I got a letter from Ascension Capital Group/Capital One asking me to sign the enclosed Reaffirmation Agreement within 10 days. I ignored it and figured it would be discussed at the 341 meeting. It wasn't. I got home and opened another letter from them saying I had an obligation to perform my intentions within 45 days of filing the SOI and for me to sign if I wanted to be entitled to maintain possession of the vehicle. So my question(s) is(are)...Does it seem possible that I would be able to do a ride through? Did I show my hand too early? Should I just sign it and keep it moving? I have continued to pay on the car and intend to keep it, I guess I was just hoping for one last hoorah in being able to do so without an actual obligation to the creditor. Am I being greedy?

[bcohen]

Unless you have significant equity in the vehicle, i.e. it is worth a lot more than what you owe, I would NOT reaffirm. Worst case, they call your bluff and take it; it's not like you won't be able to get another one.

[justbroke]

Ascension requires a reaffirmation when it comes to Capitol One Auto Finance loans. If the car is worth more than you owe, you should have considered redemption rather than re-affirmation. This is something you should discuss with your attorney. I don't know if ride-throughs are "technically" okay in Nevada. They are not "technically" allowed here in Florida (and the 11th Circuit which includes Georgia and Alabama). Does that stop them from occurring, no. However, the lender is entitled to pursue repossession if you don't reaffirm in our specific Circuit.

Speak with your attorney. Ask if you are required to reaffirm or is a ride through possible. Ask the attorney if they'd contact Ascension to see if they are interested in a ride-through.

[runninfree]

Thanks all. The car is not worth more than I owe, so that wasn't an option.

I am my attorney, so I researched it and I am getting that the law requires the debtor to at least attempt to reach a reaffirmation agreement (especially in states where it's not "technically" ok) and if it doesn't go through for some reason, it becomes the debtor's 4th option in addition to surrender, reaffirmation, and redemption. At least that's how I'm reading it. I will go through the reaffirmation process and see what I can find out prior to the court date. I saw that some people were signing and then asking the judge to reject it. I don't know that I'm interested in going that far. But I like to explore my options.

[justbroke]

If you have no choice in Nevada -- that is, reaffirm or surrender/redeem -- then you should do one. Also, did you not even consider the third option which is Redemption?

[AngelinaCat]

If you have no choice in Nevada -- that is, reaffirm or surrender/redeem -- then you should do one. Also, did you not even consider the third option which is Redemption?

The OP may not have been told of this option. Also, the attorney may have been ignorant of the option as well. Certainly our attorney never said anything to 'Hub and I about such an option. We learned of that only after we found this forum--well after we had filed and had the 341.

This may not have been an option in our case anyway, as 'Hub wished to stay with our CU, and it was their requirement to reaffirm or else.

[justbroke]

For redemption, you need to perform some calculations. If the balance is more than the vehicle is worth, then you'd look at a 722 Redemption to determine if it's "worth" doing so. If you have a really low interest rate on the existing loan or the difference in the value to what's owed is close, then Redemption may not be worth it.

[oregongal]

Want to reaffirm car loan with Wells Fargo. Do I have to call them or do I just send them my statement of intentions and cover letter? Please advise. Also I can't find the address for their loss mitigation dept. Any ideas where to send it?

[justbroke]

Oregongal, are you filing pro se? If so, you should have ALREADY served the Statement of Intentions upon the secured creditors as required by the FRBP (rules). Why are you reaffirming? Is it "required" in your State or can you do a "ride-through"?

[runninfree]

Judge rejected the reaffirmation hearing stating that I was current on the payment, that I had done everything that I could do to reaffirm, and she saw no need for me to be burdened with a contract. She further noted that she thought the interest rate was high @8.6 % and they had not offered to lower it. She said the creditor had no valid reason to oppose a "retain and pay" as long as I continued to pay as agreed. My 60 days is up 8/28.

[tobee43]

Judge rejected the reaffirmation hearing stating that I was current on the payment, that I had done everything that I could do to reaffirm, and she saw no need for me to be burdened with a contract. She further noted that the creditor had no valid reason to oppose a "retain and pay" as long as I continued to pay as agreed. My 60 days is up 8/28.

[justbroke]

Judge rejected the reaffirmation hearing stating that I was current on the payment, that I had done everything that I could do to reaffirm, and she saw no need for me to be burdened with a contract.

I love judges that do the right thing!

[oregongal]

reaffirmation

Haven't filed yet. Working on doing research and reading the NOLO book, and I was confused about whether I had to send my SOI to my lender or the clerk did. (I only have to attempt to reaffirm in Oregon) I believe the clerk does right?

[oregongal]

Haven't decided whether to hire attorney or not. Called one and he said we wouldn't qualify for Chapter 7 because we didn't have late payments. (although we are about to start because we are at our limits). That was the only info he had on us, and I respectfully disagree with his statement. We have two assets that might be liquidated, husband has guitar worth $800 that we can't exempt and a truck that is paid for, worth about $7000 and we only have a $3000 exemption in Oregon. Not worried about losing either, have a negative DMI of a hundred bucks or so...but I am a stresser, just thinking about it and I haven't slept in a week, but not sure if an attorney can help with that. Any thoughts on that?

[justbroke]

Haven't filed yet. Working on doing research and reading the NOLO book, and I was confused about whether I had to send my SOI to my lender or the clerk did. (I only have to attempt to reaffirm in Oregon) I believe the clerk does right?

The procedure from the FRBP is quite clear. The SOI must be served upon the secured creditors and the Trustee. It also must be "filed" with the Clerk within 30 days of filing. The Clerk does NOT serve it upon the creditors.