Well we are BK discharged and we kept our vehicles, the truck we are upside down on, it is worth about 9K according KBB and we owe about 17K, we took a 4 year loan (99 tahoe) at 13% so our payments are like 540 a month, and I thought I had read somewhere, that if we are struggling with payments we should try and renegotiate payments and interest with them, since if we gave it back to them they would be out, We can not do a 722 redemption becuase we are discharged, so if there a letter out there that would help me reduce interest and extend my loan back out another year, we have had it for a year, in turn we would sign a reaffirm agreement. Has anyone done this before any help would be great. Thanks
lbrown, I take it nobody has anything to comment on, maybe we will just turn it in, UGH I hate not knowing what to do. Capital One already be a sub prime (right) do you think they can negotiate something like this and change it?
If you like the car, it wouldn't hurt to try to negotiate with them. Make sure you're willing to give it up if they won't make any concessions, make sure you know exactly what your goal is, then give them a call. Decide beforehand that you need a payment of xxx.xx over xx months, or an interest rate of x.x% over x months, and don't let them talk you into anything more. Make sure they understand that you mean business, and you definitely will turn it in unless you can get your needs met. The person you talk to may not understand bankruptcy, so make sure they understand that your responsibility for this debt was discharged (you didn't sign a reaffirmation, did you?) and that the bank will be taking a big loss if you have to turn it in. If they refuse to make any changes, ask to speak to their supervisor, or if they have a bankruptcy department see if they can help you or if they know who you should be talking to. If they do agree to work with you, understand that you will probably be required to sign a refi or something, and that you will again become responsible for the loan. If you sign off on a change after the bk discharge, it make the debt new, and the "new" debt was not discharged in your bk. So make certain this is something you can continue to pay before you do it. It's another 6 years before you could file again. ;-) Good luck.
Frankly, if you had a lawyer he should have recognized that you were so upside down in the vehicle and that you could not afford the notes. Some lawyers let you reaffirm anything I guess. You are no position to bargain. You do not pay the note, then they can repossess and you cannot file bankruptcy against the defiency judgment. Why should they bargain with you when they can haunt you for the rest of your lives for the money you owe them?
Re: Re: BK 7 kept truck, want to negotiate She would not still have the vehicle if she did not sign a reaffirmation agreement. Car finance companies are pretty viligant about filing to lift the stay when they do not get reaffirms within 45 days of the Meeting of Creditors.
Re: Re: BK 7 kept truck, want to negotiate no we did not sign a reaffirmation agreement, the only one we got in the mail was from Bank of America for my car and we didn't even sign that one, we returned it saying we weren't reaffirming and we keep making payments the same did not hear anything else from it. Now Capital One if the lender for the truck, and I am kind of ""sore" about my attny not mentioning the 722 redemption I read it somewhere else after discharge. But I wrote a letter to Capital One and sending it CRR so I know they get it, I did state in there I wanted XX payments for XX years (only one longer then we owe) and if they can not comply it will be a loss to their company. I also stated that I did not reaffirm so in turn I could turn the car over to them and have no penalties for me. I am addressing it to MGMT/Financing Dept. do you think that will be good enough. Mail doesn't leave until Monday so if you have any advice let me know. I can copy and paste the letter if you think I need to. Thanks for your advice. We do not have any other debt now just the two cars, we live in military housing so next month we will have a couple grand to buy a car (or put a down payment on one) if they cannot comply. We have received offers in the mail as well. Thanks again.
Re: Re: Re: BK 7 kept truck, want to negotiate In most states there is an unofficial third option to keep the property and continue paying without reaffirming. I did this with my home. Even in states where the law says you must reaffirm to keep the property, most creditors don't enforce that. For example, there are regular posters on a bk board who are in TX and FL, neither of whom had to sign a reaffirmation. Creditors really don't want the property back. They make their money by having performing loans, and they almost always lose money in a repo or foreclosure.
Re: Re: Re: BK 7 kept truck, want to negotiate I'm surprised at how few attorneys mention 722 redemption to their clients. I wonder if the company that provides the financing is new or something? If you want to post your letter here, you just might get some good feedback.
Re: Re: Re: BK 7 kept truck, want to negotiate If you had $9,000.00 cash handy you had a right to be sore. if you did not have $9,000 in immediate cash, you could not redeem. Redemption means you pay the present value of the collateral right now - no financing.
Re: Re: Re: Re: BK 7 kept truck, want to negotiate There's a company called 722 redemption that will finance thru US Bank. http://www.722redemption.com/ The interest is very high, but since you're only paying the FMV, you end up making lower payments and paying less money out in the end.
Re: Re: Re: Re: Re: BK 7 kept truck, want to negotiate I had no clue about them. Obviously they feel there is a good market for loaning money to people who cannot file bankruptcy against them for another 6 years. Good find. I will check them out for my clients that I feel should not be reaffirming.
Re: Re: Re: Re: Re: BK 7 kept truck, want to negotiate I've only heard of 3 or 4 people who have used that company, but so far they're very happy with them.
Re: Re: Re: Re: Re: BK 7 kept truck, want to negotiate Yeah I have heard that on average it saves people 6-8K so, I really could have used that. Here is the letter that I wrote them: To Whom It May Concern: I am writing in regards to my auto loan with your company. If you pull up my account you can see that I just recently went through some financial hardship over the past six months, and am still having trouble paying your bill. I am writing to give you an option and for me to tell you what I am trying to decide to do. When I went through my bankruptcy I was unaware of the 722 Redemption Bankruptcy law to where I would have been able to refinance with a company for the fair market value, although that option has passed I want to extend the option to work something out. Unfortunately with a $538.69 payment each month it is still causing a hardship. I know and you know since we did not sign a reaffirmation agreement we have the option to just surrender the vehicle with no penalty to us and you would not be able to collect on the vehicle. I have received many offers in the mail from dealerships willing to help me rebuild my credit with a car loan very similar to yours in interest rate and lesser monthly payments. This is why I am writing you to extend my honesty, and I do not want to be forced into turning over this vehicle because of the financial hardship it is causing my family and in turn would be a loss to your company. I would like you to know that I would be willing to agree to a revised contract, so both of us would benefit from this misfortune. I would be willing to keep this loan if and only if we could extend our loan contract for twelve (12) more months to bring us back to a starting point of a total of 48 months left on the loan starting August 15, 2004. If we took the current payoff amount of $16639.15 and split that up for 48 months our new payments would be around $347.00 per month, and in turn would be very feasible for us to keep your loan current. Of course I would need this in writing before anything is agreed upon and then we could sign this new contract. Please be advised I would need 48 hours after I receive it to have my attorney look over the contract for any fine print. Your immediate attention is greatly appreciated so we can resolve this dilemma for your company and myself. Note: This letter will be sent priority mail with delivery confirmation of your receipt. Sincerely, XXXXXXXX Like I said thanks everyone, I knew posts were slow in the beginning and you guys would come through! I feel better about negotiating with them. Come August if they do not want to deal then I will just let them come and get it since we will have money to buy a used truck( my idea) or have money for a down payment for a newer truck (my DH idea) LOL thanks again.
Re: Re: Re: Re: Re: BK 7 kept truck, want to negotiate Yeah I have heard that on average it saves people 6-8K so, I really could have used that. Here is the letter that I wrote them: To Whom It May Concern: I am writing in regards to my auto loan with your company. If you pull up my account you can see that I just recently went through some financial hardship over the past six months, and am still having trouble paying your bill. I am writing to give you an option and for me to tell you what I am trying to decide to do. When I went through my bankruptcy I was unaware of the 722 Redemption Bankruptcy law to where I would have been able to refinance with a company for the fair market value, although that option has passed I want to extend the option to work something out. Unfortunately with a $538.69 payment each month it is still causing a hardship. I know and you know since we did not sign a reaffirmation agreement we have the option to just surrender the vehicle with no penalty to us and you would not be able to collect on the vehicle. I have received many offers in the mail from dealerships willing to help me rebuild my credit with a car loan very similar to yours in interest rate and lesser monthly payments. This is why I am writing you to extend my honesty, and I do not want to be forced into turning over this vehicle because of the financial hardship it is causing my family and in turn would be a loss to your company. I would like you to know that I would be willing to agree to a revised contract, so both of us would benefit from this misfortune. I would be willing to keep this loan if and only if we could extend our loan contract for twelve (12) more months to bring us back to a starting point of a total of 48 months left on the loan starting August 15, 2004. If we took the current payoff amount of $16639.15 and split that up for 48 months our new payments would be around $347.00 per month, and in turn would be very feasible for us to keep your loan current. Of course I would need this in writing before anything is agreed upon and then we could sign this new contract. Please be advised I would need 48 hours after I receive it to have my attorney look over the contract for any fine print. Your immediate attention is greatly appreciated so we can resolve this dilemma for your company and myself. Note: This letter will be sent priority mail with delivery confirmation of your receipt. Sincerely, XXXXXXXX Like I said thanks everyone, I knew posts were slow in the beginning and you guys would come through! I feel better about negotiating with them. Come August if they do not want to deal then I will just let them come and get it since we will have money to buy a used truck( my idea) or have money for a down payment for a newer truck (my DH idea) LOL thanks again.
Re: Re: Re: Re: Re: Re: BK 7 kept truck, want to negotiate Again, they really have no incentive to renegotiate with someone who just filed bankuptcy. Are you sure you did not sign a reaffirmation agreement?
Re: Re: Re: Re: Re: Re: BK 7 kept truck, want to negotiate If your payment was such a hardship, you should not have reaffirmed IMHO.
Re: Re: Re: Re: Re: Re: BK 7 kept truck, want to negotiate I did not reaffirm, we were just continuing to make payments.
Re: Re: Re: Re: Re: Re: BK 7 kept truck, want to negotiate I personally would ask for a reduction in interest too. But if you're happy just extending the loan to get a lower payment, and the car is in good enough condition to last a few years beyond when it's paid off, then I say go for it. When you're talking about it being upside down, you might want to mention a dollar figure. Maybe even print out KBB and attach it to your letter to make sure they know how much they're going to eat if you surrender the vehicle.
