Question about auto loan

[donnao]

I filed chapter 7, had 341 July 28, went well. My husband and I are separated, the loan on my car is in both our names, him being the primary. My lawyer told me to just keep making the payments, which happens to be through the bank I use, because the judge would probably not approve a reaffirmation. I did talk to someone in the loan department, and that's what they told me to do. Just a little nervous, because I read that even if you are making payments after a bankruptcy, they can still try to repo your car. Anyone have advice about this?

[AngelinaCat]

As long as you are current on your payments, there should not be a problem. Some lenders are fussy and require at least an attempt at a reaffirmation. When the judge denies the reaffirmation, then the lender is 'satisfied' that an attempt was made, and life goes on as normal. But from what I have read here, that is fairly uncommon. Just keep making the payments as you normally do.

How many more payments do you have before it is satisfied? If its only a year or two, that works in your favor.

[donnao]

I still have about four and a half years to go, would I have contacted by the bank by now, as i filed June 13th?

[AngelinaCatHub]

The bank is not in the used car business. They want your payments not your car. They cannot legally take your car if you are paying as promised. Don't sweat the small stuff, BK is stressful enough. Is your car Titled to both you and your soon to be ex? If so, is it in an "and" state or an "or" state on the Title. If it is "or" you can have the Title put into your name only. If it is "and" both you and he must change the Title to you only. This will insure that he does not get nasty and attempt to take your car after you pay for it. 'Hub

[donnao]

Also, should I contact the bank again to confirm I can just keep paying, or just keep paying and leave it alone?

[donnao]

Thanks, so far he's being very good about everything, it is registered in his name, but loan is joint

[donnao]

Made mistake, I have 3 and a half years left on my car loan

[Photomom]

I think I'd just keep paying and let it alone, if they are wanting a reaffirmation I think they'll be in touch with. JMO

[donnao]

Thanks, I that's definitely what I'm going to do.

[AngelinaCatHub]

I think I'd just keep paying and let it alone, if they are wanting a reaffirmation I think they'll be in touch with. JMO

Yes, and I too agree. Do not reaffirm, you do not know what the future is. If ex-to-be is kind, he will let the car go into your name. Just a safety procedure but you know him better than we. Hope this relieves some stress. 'Hub

[donnao]

Thank you both, you made me feel better.

[APL]

... because the judge would probably not approve a reaffirmation. I did talk to someone in the loan department, and that's what they told me to do. Just a little nervous, because I read that even if you are making payments after a bankruptcy, they can still try to repo your car. Anyone have advice about this?

This question is for the OP or anyone who can answer - why would a judge "probably not approve a reaffirmation?" Especially if one is current on their payments? Under what circumstance would the loan company repo your car that is current on payments?

This just gave me something new to worry about...

[zpbk13]

I can share my experience. It has been almost 2 years post-bk and I made every payment on our car loan faithfully without a hint at GMAC wanting the vehicle back. As others said, they want your money, not your used car.

My husband and I are separating and I don't want a car to be in both our names even if it was included in the bk so I called the bank this morning and they are sending me voluntary surrender papers to sign and then the car will be picked up.

I have secured another vehicle in the meantime in my name only. I am so grateful I found these boards before I filed and had the sense not to reaffirm the loan!!! It feels nice to be able to walk away from the vehicle without worrying about a deficiency balance.

[BKAttyMI]

As a follow-up note to this, some lenders in MI do require at least an attempt at a reaffirmation, if not, they do sometimes request that the vehicle be returned. This may go by juridiction though and your attorney should know what flies in your area.