process for reaffirmation of debt for car loan
I am in my last year of a 5 year term of paying for my car with several late payment records. I'm filing chapter 7 bankruptcy. My biggest concern is not loosing my car. The value is slightly higher than what I owe but I will be well withen the exemption amounts. Current payoff amount of $4700 and the value is about $1000 - $1500 more.
I was told that the car loan companies usually will draw up the reaffirmation agreements but I'm just not sure what to expect. I'm not in the position to be able to buy it out.
Do you know if attorneys would represent for just the reaffirmation portion? If I could afford to pay $3000 for an attorney I would just use it to pay down my car.
It can never hurt to try. Quote:I was told that the car loan
It can never hurt to try.
Quote:
I was told that the car loan companies usually will draw up the reaffirmation agreements but I'm just not sure what to expect. |
That's quite true since they would continue receiving payments if they reaffirm the loan, but the decision would vary between the companies. Therefore, it's hard to say whether or not Wachovia would agree to reaffirm the car loan.
The exemptions only apply for asset cases where the trustee is g
The exemptions only apply for asset cases where the trustee is going to liquidate and sell off your assets. Secured creditors are always secured, regardless of those exemptions. When the collateral has little or no value/equity in comparison to the loan balance, however, sometimes you can strip the lien and treat the creditor as unsecured.
Like any finance company, they would rather get the account paid off versus repossessing the collateral...
The lender will generally type up and fill out the re-affirmation agreement. Since 2005 the process is a little more difficult then it used to be -- now you will have to get the BK Court to approve the reaffirmation. It is on you to motion the court to approve the reaff, not on the creditor.
You can download sample reaff's on the BK court website to see all what it entails - it is quite lengthy. http://www.uscourts.gov/rules/BK_Forms_06_Dir/Form_240A_0107.pdf
Our situations are somewhat similar, I've a car loan with wachov
Our situations are somewhat similar, I've a car loan with wachovia too. Yesterday I called to ask when my reaffirmation papers would be mailed to me. The rep in the bk dept was rude and says we emailed it to your attorney and you have to 10/13/09 to send them back to us. She also said it may have been sent in the general inquiry subject and they may overlook the email. I ask could they fax them to my attorney also to make sure they get them and the rep said we already emailed. She had me so stressed out yesterday. So today I called my attoney's office and advised them on what happened they said the will straighten it out. It could have just been that rep, because they had never been rude and uncaring before.
Unfortunatley, that is what happens when you deal with people.
Unfortunatley, that is what happens when you deal with people. Sometimes they are having a bad day. Sometimes they are just not good at dealing with people. Most of the creditors that I have called with my attorneys contact info about my bk filing were at least civil. However, there were a couple that practically yelled at me that they did not want to call him. The way I see it, is that is their problem. They may not want to call him, but they do not have a whole lot of options in the matter. If they call me again, all they are going to here is me repeating, call my lawyer.
Submitted by southernapostolic on Tue, 08/18/2009 - 18:25
