QUESTION
Since I am still driving one, can I change mind and keep it and reaffirm or since I already filed and said I am returning it, it is too late?
Asked on Sep 09th, 2014 on Bankruptcy - Michigan
More details to this question:
I filed chapter 13 bankruptcy last month and have hearing on October 9th. I filed on my bank because the account was overdrawn and I filed on my 2 cars since they were upside down. Account and both cars from same bank. I already returned one car to them and they were pretty upset and demanded I return it anyways. I figured since I filed on the account and the other car they probably wouldn't let me keep paying on the one I have left. Thanks.
10 ANSWERS
Reaffirmation is still possible.
Answered on Sep 15th, 2014 at 8:06 PM
Derek W. Freeman
It depends. You can file an amended statement of intention as to the car, and state that you intend to keep it and sign a reaffirmation agreement. But if your bank doesn't agree to a reaffirmation agreement, you'll have to surrender the car. Generally speaking, banks prefer to collect payments rather than repossess a car and sell it. But they are not legally required to enter into a reaffirmation agreement with you.
Answered on Sep 12th, 2014 at 8:24 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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You can amend your plan and make payments on the car but since you're upside down, wouldn't it make more sense to just buy a new car?
Answered on Sep 12th, 2014 at 8:24 PM
Bankruptcy Attorney serving Huntington Woods, MI
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Detroit Lawyers, PLLC
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Is it a credit union or a bank? Credit unions have some different rules but for now I'll assume it's a bank. You can still change your mind about surrendering the car although it won't change the fact that they're still "underwater". They'll also want you to reaffirm the loan and you'll make payments through the Chapter 13 plan.
Answered on Sep 12th, 2014 at 8:24 PM
If you don't have a lawyer helping you with your Chapter 13, you should get one because it is complicated. The answer to your specific question depends on who the lender is and what your loan agreements say. It sounds like they could make trouble for you if they don't voluntarily agree to let you keep one car. You would have to provide for continued car payments in your Chapter 13 plan.
Answered on Sep 12th, 2014 at 8:24 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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See your bankruptcy attorney, they have a lien on the car and if your do not keep your contract they can repossess it. If you are in the courts without counsel you are playing with fire, and will normally get burnt.
Answered on Sep 12th, 2014 at 8:24 PM
A chapter 13 plan can be used to surrender vehicles securing debts to lenders. It can also be used to retain and pay the debts secured to vehicles. If the Plan has not be confirmed, you may be able to file an amended plan and keep the vehicles that are necessary for your reorganization.
Answered on Sep 12th, 2014 at 8:24 PM
2 Awards
You can always change your mind as long as the case is still pending.
Answered on Sep 12th, 2014 at 8:24 PM
Deborah F. Bowinski
If you filed a chapter 13 case, I hope you have an attorney representing you. Chapter 13's are quite difficult to file successfully and get a plan confirmed without the assistance of a lawyer. If you have a lawyer you should address your questions to him or her. If you don't yet have a lawyer then I suggest you strongly consider hiring one to help you through the process. You can file an amended statement of intentions, and depending upon the status of the loan payments and your cash flow situation you can probably try to keep the vehicle. But all of those answers really are quite fact dependent and this is not the right place to seek personalized legal advice.
Answered on Sep 12th, 2014 at 8:24 PM
You don't reaffirm a vehicle in a Chapter 13, but you can propose a Plan to pay off a car in a Chapter 13. You can propose any number of Plans if you change your mind, but without effective representation, you are unlikely to get a Plan approved by the Court.
Answered on Sep 12th, 2014 at 8:24 PM