Deferral of debt-making payments smaller?

I need your assistance again. This board is extremely informative and though I have researched, I have hit a wall and if anyone might know where I could find information, it would be you guys.

I am going to number everything out so it makes sense.

1. My boyfriend bought a car in early 2003.

2. In late 2003, he filed for bankruptcy and all of his debts were cancelled.

3. He reaffirmed the debt for the car, and has made on time, monthly payments in full since the purchase. He’s never been late.

4. He is not interested in selling the car or returning it to try to cancel the debt.

I spoke with a lawyer who told me because he reaffirmed, he can look into refinancing for a lower payment. I am wondering what other options are available for lowering the payment or deferring it.

I have looked into school loan debt and how the government will allow up to 3 years of deferral if you are unemployed, etc. He could be unemployed potentially within a week.

So can he lawfully defer payment without recourse from the lender? How long can he do this for?

If he can’t defer, then why not?

I don’t understand how a person can defer payments for school loans, but can’t defer credit cards or car loans.

More background info:

1. We live in an area without public transportation.

2. He has had a spinal cord injury. He can walk, but long distances and lots of stairs can cause him significant pain.

3. He has no other credit card or other debt. It’s just that his car payment is $600+ a month.

Thanks in advance,
Felix (female )

[idknow]

Originally Posted by Felix

I need your assistance again. This board is extremely informative and though I have researched, I have hit a wall and if anyone might know where I could find information, it would be you guys.

I am going to number everything out so it makes sense.

1. My boyfriend bought a car in early 2003.

2. In late 2003, he filed for bankruptcy and all of his debts were cancelled.

3. He reaffirmed the debt for the car, and has made on time, monthly payments in full since the purchase. He*s never been late.

4. He is not interested in selling the car or returning it to try to cancel the debt.

I spoke with a lawyer who told me because he reaffirmed, he can look into refinancing for a lower payment. I am wondering what other options are available for lowering the payment or deferring it.

I have looked into school loan debt and how the government will allow up to 3 years of deferral if you are unemployed, etc. He could be unemployed potentially within a week.

So can he lawfully defer payment without recourse from the lender? How long can he do this for?

If he can*t defer, then why not?

I don*t understand how a person can defer payments for school loans, but can*t defer credit cards or car loans.

More background info:

1. We live in an area without public transportation.

2. He has had a spinal cord injury. He can walk, but long distances and lots of stairs can cause him significant pain.

3. He has no other credit card or other debt. It*s just that his car payment is $600+ a month.

Thanks in advance,
Felix (female )

Well, having pondered for a few hours, all i can think of is that since he's on "good terms" with the bank payment wise, he should start with speaking with them about alternate payment options, renegotiate the payment terms, stressing that he does NOT want to dispose of the car, just seek lower payment terms.

[Judge Roy Bean]

Originally Posted by Felix

I need your assistance again. This board is extremely informative and though I have researched, I have hit a wall and if anyone might know where I could find information, it would be you guys.

I am going to number everything out so it makes sense.

1. My boyfriend bought a car in early 2003.

2. In late 2003, he filed for bankruptcy and all of his debts were cancelled.

3. He reaffirmed the debt for the car, and has made on time, monthly payments in full since the purchase. He’s never been late.

4. He is not interested in selling the car or returning it to try to cancel the debt.

I spoke with a lawyer who told me because he reaffirmed, he can look into refinancing for a lower payment. I am wondering what other options are available for lowering the payment or deferring it.

Generally speaking, refinancing a car loan is a bad deal; cars depreciate rapidly and most people already owe more on them than the vehicle is worth. You'd have to carefully look at what he owes versus what it's still worth.

Originally Posted by Felix

I have looked into school loan debt and how the government will allow up to 3 years of deferral if you are unemployed, etc. He could be unemployed potentially within a week.

So can he lawfully defer payment without recourse from the lender? How long can he do this for?

If he can’t defer, then why not?

I don’t understand how a person can defer payments for school loans, but can’t defer credit cards or car loans.

Student loans are generally longer term arrangements and have those kinds of conditions placed on the lender because they are Federally backed and thus carry lower risk for the lender/investor. Auto loans, on the other hand, are hugely profitable, secured only by the vehicle itself and are much shorter in term.

Originally Posted by Felix

More background info:

1. We live in an area without public transportation.

2. He has had a spinal cord injury. He can walk, but long distances and lots of stairs can cause him significant pain.

3. He has no other credit card or other debt. It’s just that his car payment is $600+ a month.

Thanks in advance,
Felix (female )

$600+ for a car payment is, IMHO, fundamentally ridiculous, but it doesn't surprise me if he was in financial trouble (bad credit) when he got the loan. IMHO, he needs a less expensive vehicle.

If he is upside down (owes a lot more than it's worth), he is trapped in the game.