Question about reaffirming a car-does it make the trustee scrutinize your case more?

[Diesel73L]

My wife just got off the phone with the attorney because he was speaking with her about reaffirming her car. The car was specifically purchased just prior to her defaulting on her cards as a tactical move because we needed a vehicle that could comfortably accommodate our whole family, and that was newer and reliable. We ended up purchasing a late model certified pre-owned (carries the factory warranty) at a decent price and getting good financing because my wife's credit was excellent aside from a way out of whack debt to income ratio plus she was employed at the time. Even now with her unemployed and babysitting (I am still working and my job is stable) the payment will not be problem. All of that said, the attorney said to my wife that reaffirming debts tend to make trustees look more closely at CH7 cases, but not to worry about it. He tends to do that a lot-he gives us a bad potential scenario and then says "but you'll be fine." I guess it's good to get all of the information, but the way he words things doesn't exactly calm my nerves. So I just thought I'd ask, has anyone experienced a trustee going back through things with a fine toothed comb because they reaffirmed a car? What about the bank? Can they object to reaffirming and opt to repossess the car?

[justbroke]

All of that said, the attorney said to my wife that reaffirming debts tend to make trustees look more closely at CH7 cases, but not to worry about it. He tends to do that a lot-he gives us a bad potential scenario and then says "but you'll be fine." I guess it's good to get all of the information, but the way he words things doesn't exactly calm my nerves.

I have never heard this, but your attorney may know your particular Trustee much more than my speculations! Reaffirming a car is really a question whether you can afford the vehicle, not if you deserve a discharge.

So I just thought I'd ask, has anyone experienced a trustee going back through things with a fine toothed comb because they reaffirmed a car? What about the bank? Can they object to reaffirming and opt to repossess the car?

If the Office of the United States Trustee (UST) is going to "comb" through a case, it is generally because the case was either flagged for audit, or it is an over-the-median income case. The bank can always reject a reaffirmation since it's a joint agreement! The bank does not need to reaffirm, but most will either let you ride-through or reaffirm so that they can continue to collect payments. In the end the "bank" may not want to reaffirm and could repossess but that's typically not in their best interest.

[Diesel73L]

I have never heard this, but your attorney may know your particular Trustee much more than my speculations! Reaffirming a car is really a question whether you can afford the vehicle, not if you deserve a discharge.

If the Office of the United States Trustee (UST) is going to "comb" through a case, it is generally because the case was either flagged for audit, or it is an over-the-median income case. The bank can always reject a reaffirmation since it's a joint agreement! The bank does not need to reaffirm, but most will either let you ride-through or reaffirm so that they can continue to collect payments. In the end the "bank" may not want to reaffirm and could repossess but that's typically not in their best interest.

Well we'll see. I specifically chose this attorney because he does a majority of his work in our district and knows the Trustees well. He told my wife that he would explain further at the 341 meeting on Monday. Holding my breath until then...

[LadyInTheRed]

He tends to do that a lot-he gives us a bad potential scenario and then says "but you'll be fine." I guess it's good to get all of the information, but the way he words things doesn't exactly calm my nerves.

Sounds like your attorney is doing a good job. A good attorney warns about possible consequences of your decisions. It's his job to be honest, not to calm your nerves. It's nice to have an attorney who also calms your nerves, but that isn't what you are paying him for. If he didn't give you that warning now, but told you after the trustee starts going through things with a fine tooth come, "Yeah, he does that when there's a reaffirmation," you might get upset that he didn't warn you in advance.

[justbroke]

Certainly an attorney who is showing you how something could go wrong. There is really no way to tell what's in a Trustee's mind and why they do certain things, as times. Better to have an attorney that lets you know the potential outcomes and that s/he has your back!