Re: Re: Re: Re: Re: Re: Question about keeping your car in Ch. 7???

Filing Bankruptcy Chapter 7 and Chapter 13 Personal Bankruptcy

[ Follow Ups ] [ Post Followup ] [ The Bankruptcy Forum ] [ FAQ ]

Posted by: Me on 07/30/03:

In Reply to: Re: Re: Re: Re: Re: Question about keeping your car in Ch. 7??? posted by: gk on July 29, 2003 at 07:33:01:

You cannot FORCE a secured creditor to reaffirm. You DO NOT have to be current to reaffirm And there is NO law that states you have to be current. A creditor doesn't have to agree to reaffirm. I think it's in their best interest to do so rather than lose money so I always offer to negotiate a reaffirmation. You must have the collateral properly insured or no reaffirmation will happen.
: I would agree with this, not from experience, but from logic. Perhaps you may have to be current to FORCE a secured creditor to accept a reaffirmation agreement, however, I would think if they have a reasonable expectation of you paying post BK, you could negotiate a deal, even if you are not current. Why would they want to spend the money to repossess, if you were willing to sign a deal that resumes payments? They always offer to make deals pre-bk, so why would they not accept a deal post-bk, if you have reaffirmed? Or, is there a BK law requiring you be current to reaffirm? Curious.
:
: ahhhhh!! Let me tell you the way I do it. I have been working on the side of a creditor for 18 yrs. It is a myth that you have to be current in order to reaffirm. If the creditor wants to recover the account they will work the terms out with your attorney. The whole deal should be negotiated thru your attorney as that's what you paid him for-to represent you! If you want to keep collateral your attorney can negotiate a reaffirmation agreement which usually spells out the original terms of your original contract. It should also state when you should should begin making your monthly payments, if you are still paying that's great, even though you may be behind the creditor should be able to re-age your account to show it current as of the date of the reaffirmation agreement's filing date. Have your attorney ask if they will defer past due payments for you as part of the reaffrimation agreement. If you need to reduce the payment it is possible sometimes to do that, and even negotiate the interest rate. Normally the creditor will work with you in order to recover the loan if the vehicle is not a brand new one. However, sometimes the larger creditors just don't care how big a loss they take, if you don't reaffirm according to all their terms you lose the collateral. Hope this helps...my advice is to let your attorney work it out for you and you should also contact the creditor and tell them that you would like to do this, many times you can work it out yourself and then call your attorney to tie up the deal.

Follow Ups:

Post a Followup

Name :
E-Mail :

Subject : Re: Re: Re: Re: Re: Re: Re: Question about keeping your car in Ch. 7???

Comments:
: You cannot FORCE a secured creditor to reaffirm. You DO NOT have to be current to reaffirm And there is NO law that states you have to be current. A creditor doesn't have to agree to reaffirm. I think it's in their best interest to do so rather than lose money so I always offer to negotiate a reaffirmation. You must have the collateral properly insured or no reaffirmation will happen.

: : I would agree with this, not from experience, but from logic. Perhaps you may have to be current to FORCE a secured creditor to accept a reaffirmation agreement, however, I would think if they have a reasonable expectation of you paying post BK, you could negotiate a deal, even if you are not current. Why would they want to spend the money to repossess, if you were willing to sign a deal that resumes payments? They always offer to make deals pre-bk, so why would they not accept a deal post-bk, if you have reaffirmed? Or, is there a BK law requiring you be current to reaffirm? Curious.

: :
: : ahhhhh!! Let me tell you the way I do it. I have been working on the side of a creditor for 18 yrs. It is a myth that you have to be current in order to reaffirm. If the creditor wants to recover the account they will work the terms out with your attorney. The whole deal should be negotiated thru your attorney as that's what you paid him for-to represent you! If you want to keep collateral your attorney can negotiate a reaffirmation agreement which usually spells out the original terms of your original contract. It should also state when you should should begin making your monthly payments, if you are still paying that's great, even though you may be behind the creditor should be able to re-age your account to show it current as of the date of the reaffirmation agreement's filing date. Have your attorney ask if they will defer past due payments for you as part of the reaffrimation agreement. If you need to reduce the payment it is possible sometimes to do that, and even negotiate the interest rate. Normally the creditor will work with you in order to recover the loan if the vehicle is not a brand new one. However, sometimes the larger creditors just don't care how big a loss they take, if you don't reaffirm according to all their terms you lose the collateral. Hope this helps...my advice is to let your attorney work it out for you and you should also contact the creditor and tell them that you would like to do this, many times you can work it out yourself and then call your attorney to tie up the deal.

Return To The Bankruptcy Forum

[ Follow Ups ] Post Followup ] [ The Bankruptcy Forum ] [ FAQ ]