Expert: Terry Leeders - 1/28/2008

Question
My wife and I recently filed chapter 7(with an atty).I would like to know if I can talk to a lender about the terms of my loan.To be more specific,We own an RV and wish to keep it.However,I/we are not going to "reaffirm".The main reason is I know that the bank doesn't want it and I dont want to be responsible in the future if I cant continue to pay.At the present time we are current on our payments and are continuing to pay.Is it reasonable to ask them to reduce the loan amount or interest rate to help us as long as we continue to pay?.............more important,........Is it legal?

Thank you in advance for your time and help.Please be advised that your answer may generate more questions.I/we ahve talked with our attorney about alot,however he is on his honeymoon at this time and unavailable.

Thanks,
Greg

Answer
If you do not reaffirm, then there is no negotiation with the lender.  The reaf may have better terms for you.  if not reaffirmed, the lender has the right to the items back.  IF you pay for them, it would be up to the lender if they will agree to let you keep the items if you are current.  Since the RV may have some resale value, you need to speak to them directly about the options available if you do not want to reaffirm.  They are under no obligation to let you keep the RV, even if you are current, if you don't sign the reaffirmation.