Raeffirming my Car Loan and negotiation?

What is the name of your state? OH

Hi. I have a car with a KBB value of about $2000-2500. I owe about $4500 on it. I am in the middle of CH 7 and I am doing it Pro se. We aren't in a position to redeem it or go buy another vehicle. Should I try and talk with the lender to negotiate the total owed? Or is that not something to do? I will probably Reaffirm the loan but am not 100% certain.

Any thoughts or tips are appreciated.

Thanks.

[Ladynred]

If you are not required to reaffirm, I wouldn't , not when you're that upside-down on it. As long as you keep paying on it, you'll usually be allowed to keep the car - they don't really want it back anyway.

If you reaffirm the loan and later, for whatever reason, can't make the payments they can come after you for the debt. If you do not reaffirm and become unable to make the payments you should be covered by your bankruptcy. Just keep making payments and they shouldn't bother you.

I thought that in OHIO I had to actually reaffirm to keep the vehicle? I had to file a Staement of Intention to that effect. I believe I can amend it later, IIRC. Is this correct?

Or should i see if they will renegotiate the loan?

Thanks.

You should check with a lawyer. I don't know if or how bankruptcy differs from state to state. When I filed I did not reaffirm on my car loan but kept making payments and paid it off. The bank was notified of my intent to continue to keep making payments. I did it that way on my lawyers advice.

[AttorneyOney]

Technically, you have to reaffirm or face repossession. Practically, especially with the loan upside down, the lender is not going to repo if you keep up the payments.

You really would be better off in the long run to redeem the car. You should be able to do so for less that the KBB value, since you'll be saving the lender the cost of repossessing and selling the car. Is there no one you could borrow a couple of grand from?

Yeah, I know I would be better off. Just am not in a position to do so. The TRUSTEE seemed pretty intent on me sending the Debtor a copy of my Statement of Intention to reaffirm. I don't know if I have any other options.

Thanks.

[AttorneyOney]

Creditor is definitely entitled to a copy of your statement of intention, but you're entitled to change your mind about your intention. If the creditor knows you're willing to reaffirm, you won't have any leverage in trying to negotiate a better redemption price. You could try filing an amended statement of intention, which you serve on all affected parties. Then try to negotiate a good redemption price. If that fails, file another amended statement of intention to reaffirm.