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When Will an Auto Lender Decline to Reaffirm a Loan in Bankruptcy

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  • 12-08-2015, 03:39 PM
    JoseFlores
    When Will an Auto Lender Decline to Reaffirm a Loan in Bankruptcy
    My question involves bankruptcy in the state of: Texas. Just filed petition and concerned about loan not being reaffirmed. Under what circumstances would bank not want to reaffirm, when would the judge not allow it?
  • 12-08-2015, 03:46 PM
    adjusterjack
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    Quote:

    Quoting JoseFlores
    View Post
    My question involves bankruptcy in the state of: Texas. Just filed petition and concerned about loan not being reaffirmed. Under what circumstances would bank not want to reaffirm,

    You'll have to ask the bank.

    Quote:

    Quoting JoseFlores
    View Post
    when would the judge not allow it?

    You'll have to ask the judge.

    Seriously, there's no way to even guess what any banks or judges would do.
  • 12-08-2015, 03:49 PM
    llworking
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    Quote:

    Quoting adjusterjack
    View Post
    You'll have to ask the bank.



    You'll have to ask the judge.

    Seriously, there's no way to even guess what any banks or judges would do.

    The only guess I could hazard would be if the loan amount was clearly beyond what he could ever be realistically expected to pay. The bank really has no reason to not reaffirm.
  • 12-08-2015, 03:50 PM
    flyingron
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    I assume we are talking chapter 7 here. It's really up to the lender to determine if they will accept a reafirmation. I don't know why they wouldn't. They almost certainly are in a worse position if they don't. The judge then will accept it unless it's grossly unfair to you or the other creditors.
  • 12-08-2015, 04:20 PM
    JoseFlores
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    Would you say it's unlikely for judge to approve? The payment is 250 a month and I make roughly 1600
  • 12-08-2015, 04:29 PM
    adjusterjack
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    Quote:

    Quoting JoseFlores
    View Post
    Would you say it's unlikely for judge to approve? The payment is 250 a month and I make roughly 1600

    If I had to make a wild guess I'd say that the judge is likely to approve it because a car can be considered something of a necessity.

    However, there may be an advantage to you if you keep making the payments without reaffirming.

    Read the pros and cons at:

    http://www.nolo.com/legal-encycloped...ankruptcy.html
  • 12-08-2015, 04:30 PM
    JoseFlores
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    If you dont reaffirm, then how could you possibly keep the car?
  • 12-08-2015, 04:55 PM
    jk
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    Quote:

    Quoting JoseFlores
    View Post
    If you dont reaffirm, then how could you possibly keep the car?

    If you do not reaffirm you have no right to keep the creditors car.
  • 12-08-2015, 05:05 PM
    flyingron
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    Quote:

    Quoting jk
    View Post
    If you do not reaffirm you have no right to keep the creditors car.

    That's up to the creditor. You can still make payments, post discharge, if they'll accept it.
  • 12-08-2015, 05:19 PM
    Mr. Knowitall
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    ...Although even without reaffirmation most lenders will continue to accept timely payments and, if the car is ultimately paid off, will release their liens.
  • 12-08-2015, 05:26 PM
    JoseFlores
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    Ajusterjack! I think on a couple cards I might of forgot to put the date sdebt was incurred!! Oh no do you think they will dismiss case??? I know I did majority may have forgot 2 or 3 cards to write when was incurred
  • 12-08-2015, 05:54 PM
    jk
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    Quote:

    Quoting flyingron
    View Post
    That's up to the creditor. You can still make payments, post discharge, if they'll accept it.

    The debtor has no right to retain the vehicle. The creditor may allow it but it is by permission of the creditor.
  • 12-08-2015, 07:03 PM
    flyingron
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    Quote:

    Quoting jk
    View Post
    The debtor has no right to retain the vehicle. The creditor may allow it but it is by permission of the creditor.

    This is the most incorrect and stupid thing I have heard. He has the RIGHT because he is the titled owner of the vehicle. He has no obligation on a discharged, non-reaffirmed loan but it is his until the lender exercises the right of repossession, which they can't/won't do if the payments are current.
  • 12-08-2015, 08:39 PM
    adjusterjack
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    Quote:

    Quoting JoseFlores
    View Post
    Ajusterjack! I think on a couple cards I might of forgot to put the date sdebt was incurred!! Oh no do you think they will dismiss case??? I know I did majority may have forgot 2 or 3 cards to write when was incurred

    Here's an article about filing amended forms:

    http://www.nolo.com/legal-encycloped...tcy-forms.html

    Read it. Then check the court website (where you filed) and look for specific instructions and forms. If you can't find anything on the website go to the courthouse and ask for it.
  • 12-08-2015, 08:53 PM
    JoseFlores
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    What happens if it's not ammended? Will the trustee question it or just leave it?
  • 12-08-2015, 08:57 PM
    adjusterjack
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    Quote:

    Quoting JoseFlores
    View Post
    What happens if it's not ammended? Will the trustee question it or just leave it?

    I don't know.

    It's best that you file the amendment so you don't have to face that question later.
  • 12-08-2015, 08:59 PM
    JoseFlores
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    Ok. I know this is going off topic, but box 4 on the petition, is that only for if you have owned or operated a buissness?
  • 12-08-2015, 09:04 PM
    adjusterjack
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    Quote:

    Quoting JoseFlores
    View Post
    Ok. I know this is going off topic, but box 4 on the petition, is that only for if you have owned or operated a buissness?

    You mean Item 4 - Any business names and Employer Identification Numbers (EIN) you have used the the past 8 years?

    If you haven't you check the box that says "I have not used any business names or EINs.

    If you have, you list them.
  • 12-08-2015, 09:14 PM
    JoseFlores
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    I mean, I'm employed and when I file for taxes, it ask for my employers ein.... I'm just confused what that is referring to. Is it referring to if I owned a buissness and have an WIN or not?

    - - - Updated - - -

    Ein
  • 12-08-2015, 09:52 PM
    jk
    Re: Is It Common for Auto Loan Company to Not Reaffirm Loan
    Quote:

    Quoting flyingron
    View Post
    This is the most incorrect and stupid thing I have heard. He has the RIGHT because he is the titled owner of the vehicle. He has no obligation on a discharged, non-reaffirmed loan but it is his until the lender exercises the right of repossession, which they can't/won't do if the payments are current.

    The debtor does not have the right to retain the car. You said so yourself so in calling my response stupid and incorrect you have essentially said the same thing of yourself. (Post #9)

    if the debt is not reaffirmed, the creditor does not have to allow the debtor to retain the vehicle and the creditor is not required to accept payments since the contract obligating the debtor has been terminated.


    The creditor can repossess the vehicle simply due to the fact the contract has been terminated. Whether they will or won't repossess it is entirely up to them. The debtor still has no rights to retain the vehicle. If he should wish to retain possession of the vehicle, it is only by the creditors agreement to allow it.


    So while a creditor may continue to act under the terms of the contract if they so choose, it is not a right the debtor can exercise should the creditor refuse to allow it.
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