top Ad Widget



No announcement yet.

CA Auto Loan Reaffirmation Vs. Retain and Pay Mess Up by Attorney

  • Filter
  • Time
  • Show
Clear All
new posts

    CA Auto Loan Reaffirmation Vs. Retain and Pay Mess Up by Attorney

    Here's the deal (context first, question at the end):

    The BK was filed maybe two months ago now and we've had the creditor meeting. The BK is pretty straightforward and we don't expect any issues, but we still have to get through the reaffirmation for the car. Our attorney told us not to worry about the reaffirmation, that he checked our financials and agreed we can pay for it, so it should be clear sailing once we get there. But a mistake was made by his office on the reaffirmation paperwork and there was a delay for some reason and while that was happening we looked up the whole reaffirmation process and discovered the "retain and pay" thing had been approved in our state (CA) at the beginning of the year--so why did we pay $250 for a reaffirmation when we never had to go through that to begin with?

    Well, we then ended up with a scheduling problem such that one of us (married couple) will be out of town on the scheduled date to go in front of the judge/trustee for the reaffirmation o we brought that question up with our attorney (why are we doing this to begin with?) and his response (in e-mail form, so we have absolute proof of it) was that there was no such process for cars. We sent him the link to reality and he came back and said he would refund us the $250, file an amendment to the statement of intent to rescind the reaffirmation and assert the retain and pay instead.

    The questions are these: can this screw up our ability to keep our car, given this could look to our creditor like we're suddenly hiding something? And, is there anything else that could negatively come from this? Is there any reason to hire a second attorney (not like we have the money to do that...)?

    Thanks in advance for any help!

    There is no way to tell. There is no reason to hire another attorney (since you seem to have already filed and that's most of the attorney's fee). I can't give you any reason why they attorney is not up on the law, or just figured that by reaffirming that you would keep your credit reporting of the vehicle loan. I would never personally reaffirm unless I 100% had to reaffirm in order to keep the vehicle.

    (Yes, something could come negative if you pay even a day late or you fail to maintain adequate insurance. The creditor should be especially vigilant where the debtor has been relieved from personal responsibility to pay on the note.)
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.


    bottom Ad Widget