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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 11645
Experience:  JD, MBA
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I am in chapter 7 western North Carolina - the reaffirmation

Customer Question

I am in chapter 7 western North Carolina - the reaffirmation agreement I got for my auto states an amount that I do not agree with in the line that says How much is the debt - On the date the bankruptcy was filed
It looks to be about 1,000.00 higher - I have called and emailed the collection company that is handling this for my creditor but they will not change the form they try to intimidate me and I don't know what to do.
Is it going to reaffirm right where I left off or are they actually trying to add to my loan amount
Submitted: 3 months ago.
Category: Bankruptcy Law
Expert:  TJ, Esq. replied 3 months ago.

Hello and thank you for the opportunity to assist you. My name is ***** ***** I will do my very best to answer your legal questions.

If you sign the reaffirmation agreement, then the new amount will include that extra $1000. It could be legitmate, of course. Perhaps collection fees? Attorney fees?

But here's a suggestion: Ask the lender what it will do if you continue to make all payments, but refuse to reaffirm the debt. In my experience, most lenders will not repossess the car. Instead, they'll continue taking the payments. Of course, that assumes that you're current on your loan. If you are not, then reaffirming is probably a better idea. In that case, I'd ask the lender for a breakdown of the current balance.

Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied.

Customer: replied 3 months ago.
How would an attorney get the reaffirmation for me - I have hit a wall with the collection co working for the lender
Expert:  TJ, Esq. replied 3 months ago.

Hi again.

I don't know that an attorney could get the reaffirmation for you. Not sure what you mean, to be honest.

Bear in mind that you don't have an absolute right to reaffirm the debt. The lender must agree. Also, the judge must agree.

Customer: replied 3 months ago.
I am not behind on payments and have continued payments every month the lender uses a collection company that mails the docs out
Customer: replied 3 months ago.
I am a pro se in chapter 7
Expert:  TJ, Esq. replied 3 months ago.

Hi again.

Since you are current, I would ask them if they will repossess if you do not reaffirm. Most lenders do not.

Expert:  TJ, Esq. replied 3 months ago.

If you can get away without reaffirming, then that is absolutely the best result. Reaffirming a debt is almost never a good idea.

Customer: replied 3 months ago.
But then they can take the car at any time
Expert:  TJ, Esq. replied 3 months ago.

Hi again.

They can only take the car if you breached the contract. If you always paid on time, then that is not an issue. If the bankruptcy itself is a breach of the contract (you should check), but they continue to accept payments afterward, then they will have waived the breach. Thus, they cannot repossess.

Also, from a business perspective, it makes no sense to repossess your car if you are making payments. That would be stupid. They would be throwing away interest payments, and will likely not even be repaid in full if they sell the car. It just makes no sense and is unlikely.

If I were in your shoes, I would not reaffirm unless they indicate that they will definitely repossess even if you keep making timely payments. And even then, I would only reaffirm if I felt like I absolutely had to have that particular car.

Expert:  TJ, Esq. replied 3 months ago.

Hello again. I didn't hear back from you, so I'm just checking in to make sure that you don't need more help on this issue. If not, then please remember to provide a positive rating via the stars (and note that your positive rating is the only way that I'll get credit for helping you, so I greatly appreciate it). Thank you!

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