Discharged, and car with equity NOT reaffirmed. Help???

[ld2366eh]

Hi! Ok, come to find out that even though I filled out our reaffirmation agreement and the attorneys sent it to TD Auto Finance, they (TD Auto Finance's attorneys) never followed through with submitting the paperwork, and my attorney missed it too. Should I be worried? I have 3 payments left and about $12,000 in equity in the vehicle. Do I try to pay it off ASAP, or can I just make my payments on time for the next 3 months? Anyone have any experience with a situation like this? Can my van get reposessed, and if it does, can I still get it back? Help! Thanks!

[tobee43]

not all car loans are reaffirmed and many just continue to pay their payments. actually, it puts you in a great position in case you wanted to walk away from the loan provided it was listed on your petition. although, i understand that's not your fear. IMO you will be just fine, you most likely paid on time and with only a few payments left the lender may have felt confident enough you would pay as agreed. (just a wild guess).

i think you will fine.

[malf1204]

The lender still has to abide by state law if they plan to repossess the vehicle. They are required to send you a notice that allows you to pay the loan to avoid repossession in most states. They do not want to repossess I would continue to pay and you should be done in three months.

[ld2366eh]

Thank you both for your replies! That helps put my mind at ease. I called TD Auto after I posted my Feb payment online yesterday and the person I spoke with put a note in my file that we intended to keep the vehicle and she said I will be fine, even though we have equity. They just want me to keep paying. So for anyone else out there TD Auto Finance seems to be one of those companies that doesn't require a reaffirmation agreement.

[Floridagail]

I wish I would of known that b4 we bought our car, Ford Is requiring reaffirmation or they want us to surrender. We are current, wish I had not made the payment last week..

[Drazil65]

We did not reaffirm either of our cars and just kept making payments (we were never late on either car, always current). We paid one off a few months after discharge last year and we are about to pay the other off later this year. It was never an issue.

[Charlie777]

Some lenders, Ford is one, have written into their contracts that filing BK is an "event of default". Whether that means they can repossess if you don't reaffirm depends on the state laws and BK circuit practices.