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Car loan...reaffirmation question..A few questions

Date: Thu, 10/15/2009 - 07:37
Submitted by on Thu, 10/15/2009 - 07:37
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Hi, I'm in the final phase of my chapter 7 bankruptcy in CA and was wondering about my car loan.


A few questions.

I have a car that is worth probably 17K in the market but I owe about 20K, which is not a problem for me. A few months ago I signed the reaffirmation papers from my lawyer but I still haven't heard from Chrysler.

Is it normal they will want to finalize the agreement in a hearing in Bankruptcy court?
Of course my attorney says there is a chance of a hearing which will mean another day off for me and more attorney fees. I know my attorney always has to tell me there is a chance but I'm wondering if anyone has had to have a hearing?

WHen I try to pay online it says "Voluntary payments can be mailed to:"

Should I not pay anything until I have an agreement?


Any input?

Thanks


Did the court approve the reaffirmation? Chrysler probably doesn't care about going to court or requesting a hearing. ANd you generally wouldn't have to go to court either. But your BK attorney does have to motion the court to approve that reaffirmation agreement.

If you are intending on keeping the car, you should still send payments in. That is because once the reaffirmation is signed/approved, it is as if you never went BK on that debt. So any payment that are past-due would then be collectible. (IE if your account is 4 payments behind, then Chrysler will still expect you to make up those 4 payments). If not, they can repossess the vehicle.


Submitted by DebtCruncher on Thu, 10/15/2009 - 09:42

DebtCruncher

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Thanks for the info...My attorney said the courts are so behind in California he wasn't sure if I would be required to have a hearing or not.


Does the court have to approve the reaffirmation in a hearing, or does the trustee get it approved without a hearing?

Thanks for the info


Submitted by on Sat, 10/17/2009 - 06:46

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2005 revisions to the Bankruptcy code state that loan reaffirmations have to be approved by the court. I don't think there's normally a "hearing" involved, but more rather a simple motion to approve the agreement. (The purpose/intent of the law is for the judge to make sure you're not signing an agreement that's against your best interest.)

It may be such that the court "trusts" your attorney not to enter you into any agreements against your interest. So the court may accept the agreement by default, as long as your attorney signs off on it. If that's the way CA courts work, then maybe you don't need a hearing or motion......

I'd say to just keep on your attorney, make sure he follows up on it and ultimately gets done whatever needs to get done. If your bankruptcy is discharged before the reaffirmation is completed, then the creditor will be free to repossess the vehicle.


Submitted by DebtCruncher on Sat, 10/17/2009 - 12:42

DebtCruncher

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Thanks very much DebtCruncher for the info..

Your last post explains things much better than my last conversation I had with my attorney.

I'll have to stay on top of the situation with my attorney because I cant afford to lose the vehicle, but I also don't want to make payments if I don't get reaffirmed.

Thanks


Submitted by on Tue, 10/20/2009 - 10:23

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I have a car through chrysler that I want to keep but did not reaffirm after my Ch 7. I am current on all payments and have never been late. I was discharged about 2 months ago. They wont seem to give me a answer if they will repo my car. Does this happen when you current? What can I do now to keep my car? Is there any warning before they repo? Any info would be great.


Submitted by on Wed, 12/02/2009 - 21:08

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