Bridgecrest Reaffirmation Question

[thebunnylady]

Good morning,

My husband and I are planning to file Chapter 7 bankruptcy in Missouri pro se. I feel comfortable with most of the paperwork myself and have researched any questions I have. There's just one thing that I need additional clarification on.

We totaled our paid off Pontiac Vibe in November 2024 (heartbroken, best car I ever had) and had to make the decision to get something quickly, our funds were tapped out after a home purchase earlier last year and all the fun surprise repairs we had. We ended up going through Carvana for a 2024 Kia Soul with 5K miles. Our loan is at 23,272 and the car is worth about 22,700. Payment is $658 per month for 5 years, with a 20.5% interest rate.

I know, not great. It's our only vehicle, and my husband uses it 3.5 days a week to get back and forth to work. We would like to "retain and pay" that's what we put on our statement of intention. The goal is not to reaffirm, but I am not sure how Bridgecrest handles this internally. My research online hasn't led to much. My best guess is they will push hard for reaffirmation then potentially repo even if we stayed current?

Should we consider pushing hard to come up with funds to buy a beater in the next couple of months before we file or would that look bad to a trustee? We are hoping to file in the next 3 months. I have considered using a lawyer because this is the only area I feel stuck in but I am hoping you fine folks have some thoughts or ideas.

I appreciate your time.

Editing to add: We will have to use Kansas exemptions as we lived there more of the last two years, we moved to Missouri in June 2024. Not sure if that is important, but wanted to include that information.

[justbroke]

I don't know how Missouri/Kansas works when it comes to personal property. Here, in the 11th Circuit (Florida, Georgia, Alabama), we must redeem, reaffirm, or surrender. There is no "retain and pay" in this circuit. I don't know what it's like in your circuit or courts.

You're Pro Se, maybe you can negotiate with the creditor to reaffirm and reduce the interest below 10% (it is possible). The reaffirmation agreement can even change the amount owed or the interest rate so it's worth trying. Otherwise I don't know what to say. Here, in Florida, we can't retain and pay.

However, since you are Pro Se, and you attempt to reaffirm it will need to go to a hearing before the judge. The judge is not likely to allow the reaffirmation but will allow you to "retain and pay" under a court order.

[thebunnylady]

I appreciate your response. In the 8th and 10th Circuits (Missouri and Kansas respectively), sometimes it is allowed to retain and pay. I have a feeling that Bridgecrest will balk if we can't reaffirm but it's worth giving it a try. I knew we would have to go in front of the judge to reaffirm, I feel pretty confident explaining the situation to them.

Would it look bad to the trustee if we bought a beater car a few months before filing? We want to make sure we have a vehicle just in case.

[justbroke]

If you are filing together you can typically exempt in your vehicle. I don't know how the exemptions work for KS versus MO (you are using KS exemptions). The key is whether you have sufficient exemptions to protect any vehicle purchased right before filing.