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Ch 7 And Hardship Discharge On Auto Loan

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Ch 7 And Hardship Discharge On Auto Loan

Postby favian » Sat Nov 12, 2016 12:57 pm

Greetings!  Just had a 341 meeting and now I recieve a notice through my attorney that Chrysler financial wants a reaffirmation for a vehicle with lien.  She advises against it but we have had no success if finding alternate lending for the vehicle we have several thousand in positive equity in until after the ch. 7 is fully discharged.  We have this as our only vehicle and have a severaly disable child who needs frequent medical attention, all added to losing our business this year. I was told that we may qualify for something called a hardship discharge due to our circumstances which would basically write off the vehicle's balance.  We are currently 2 month's behind on the payment and Chrsler says they won't deal with us until we are current, which is fairly unlikely at this time.  Is there any truth to this being a possibility?  Thank you.
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Ch 7 And Hardship Discharge On Auto Loan

Postby Grosvenor » Sat Nov 12, 2016 8:26 pm

Greetings!  Just had a 341 meeting and now I recieve a notice through my attorney that Chrysler financial wants a reaffirmation for a vehicle with lien.  She advises against it but we have had no success if finding alternate lending for the vehicle we have several thousand in positive equity in until after the ch. 7 is fully discharged.  We have this as our only vehicle and have a severaly disable child who needs frequent medical attention, all added to losing our business this year. I was told that we may qualify for something called a hardship discharge due to our circumstances which would basically write off the vehicle's balance.  We are currently 2 month's behind on the payment and Chrsler says they won't deal with us until we are current, which is fairly unlikely at this time.  Is there any truth to this being a possibility?  Thank you.
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Ch 7 And Hardship Discharge On Auto Loan

Postby alcander84 » Sun Nov 13, 2016 8:01 am

The vehicle is a secured loan.  your options are to 1. reaffirm, and keep paying, and staying responsible for the debt. 2. you can surrender the vehicle, discharge the debt and then go get another, hopefully more affordable vehicle. 3. You can try to bring a motion to redeem the vehicle. This is where you will pay off the car at the fair market value.  There are several companies out there who will finance that payoff for you.  4. You can retain and pay - if the creditor will let you.  This is the most risky, and you won't get 'credit' for payments on your credit report. But, the lender sometimes lets you keep the vehicle if you keep paying on it, even without a reaffirmation agreement.
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