Question about reaffirmation

[halloweendmb1]

I have a first mtg with Countrywide and alease with Toyota. Never missed a payment on the two and want to keep them can I reaffirm those 2 accounts when I file chapter 7?

How and what does the reaffirmation process mean?

[lrprn]

I have a first mtg with Countrywide and alease with Toyota. Never missed a payment on the two and want to keep them can I reaffirm those 2 accounts when I file chapter 7?

Depending on your state's exemptions, you may be able to keep both and not reaffirm. Solid legal counsel can help you sort out what the best options are for your situation.

How and what does the reaffirmation process mean?

Here are resources that explain what reaffirmation is and how to decide what to do when you file bk:

http://www.moranlaw.net/secured7.htm

http://www.bankruptcyinfo.com/CM/Chapter7/HousesCars.asp

Do a search for reaffirmation here in the forum. There have been several lengthy discussions about whether it makes sense to reaffirm when you can make payments on time. If you reaffirm and something happens so you can't make payments, then you are responsible for the debt. If you don't reaffirm, then you walk away debt-free.

[halloweendmb1]

does Countrywide reaffirm on house payment when you have always been current. I have never missed my house payment or car payment?

[CoCoChanel]

As far as the leased vehicle, I too had leased a vehicle and they allowed me to keep it as long as I continued to make the payments which I had always done(never missed one)but instead of a reaffirmation, GM told me that they require a Lease Assumption statement to be signed by me in Illinois. I,m not sure if they have the same thing where you are, but I never signed a lease reaffirmation agreement.

[BassBoy]

Some lenders are still allowing what is called a "ride through". This is when the debtor continues to make the payments, but no reaffirmation is completed. This was allowed under the old BK law (prior to Oct. 15, 2005), but the new law is the debtor must state their intentions when they file. Anyways, not doing a reaffirmation is what many attorneys are instructing their clients because without a reaffirmation, the debtor can surrender the property (houses and cars) at any time after the discharge and the debtor is not responsible for the deficency balance.

[lrprn]

Some lenders are still allowing what is called a "ride through". ... This was allowed under the old BK law (prior to Oct. 15, 2005)...

Ride-throughs are still allowed in Ch 13 under the current bk law, but only when the car was purchased more than 910 days before filing.

Several recent case law decisions around the 910-day "hanging paragraph" are attempting to clarify exactly how to interpret this poorly written part of the current bk law:

http://lawprofessors.typepad.com/securedcredit/2007/05/is_a_hanging_pa.html

http://bapcpa.blogspot.com/2006/04/another-take-on-purchase-money-vehicle.html