I am current on both but can't keep up with them and the credit cards, personal bank loans etc. I pass them means test with them being kept but will the trustee not allow me the cars. Unfortunately I am embarrassed to admit this is a repeat bankruptcy. My last Chapter 7 was 8 years ago.
Excellent question as many debtors worry about the reaffirmation process. Some attorneys are in favor of reaffirmations and others are against as they are primarily for the benefit of a creditor. You should speak directly with your bankruptcy attorney to weigh the pros and cons of a reaffirmation agreement.
Generally speaking, I have seen Bankruptcy Judges deny Reaffirmation Agreements in cases in which it seems non-feasible for the debtor to make the payments. In these instances, it seems as though the Judge would be looking out for the debtor and keeping safe their "fresh start". In the event that a Reaffirmation Agreement is denied, that should not prevent you from negotiating directly with your creditor. Again, please speak with your bankruptcy attorney as their are several relevant topics to discuss about Reaffirmations. Hope this helps.
The aforementioned "answer" is not considered to be legal advice. You are advised to contact an experienced attorney for legal advice pertaining to your specific needs. Furthermore, the above does NOT constitute an attorney-client relationship. France Law Group is a debt relief agency and helps people file for relief under the U.S. Bankruptcy Code.
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Estate Planning Attorney
The judge will hold a hearing to review the reaffirmation agreements and make sure they do not create an undue hardship for you. If you can't really afford the payments, the judge may refuse to sign the agreements, in which case your debt would be discharged and the lender could repossess.
(The hearing is not always necessary if you have an attorney, but I assume that you're representing yourself.)
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Chapter 11 Bankruptcy Attorney
I agree with the two previous responses, but simply want to expand on "undue hardship." If you are representing yourself and your net income is less than your expenses (including the reaffirmation of both vehicle payments), then you have an "undue hardship." It means that based upon your admissions of income and expenses, your current budget does not have enough income to support it. If you have an undue hardship, you have to explain to the court how your going to account for the monthly shortfall.
Chapter 7 Bankruptcy Attorney
The Trustee does not make the decision whether or not you can reaffirm on a vehicle loan - only the Judge can make this decision. It may be that the US Trustee is questioning whether you ought to be allowed a deduction for paying for both vehicles on the Means Test, and this would be a decision for the Judge to make. The Judge will want to hear your explanation of why you need two vehicles if you are only one person and whether the amounts owed on these vehicles is excessive. Hope this perspective helps!