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Lease Assumption agreement in CH7

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    Lease Assumption agreement in CH7

    So my auto company is saying that I signed a lease assumption and not a re-affirmation agreement.

    My BKR has not been discharged yet, and I was hoping to change my mind and give the car back since I can't afford it anymore.

    They are saying the lease assumption is different from re-affirmation agreement.

    However, the auto company is playing hardball. What can I do?

    Any help and advice would be greatly appreciated!

    Thanks,


    #2
    It reads as though you signed a lease assumption agreement. From what I know and have dealt with, a lease assumption agreement is binding upon being executed by the debtor and the lender. They're not playing hardball, they are enforcing the binding contract.

    This is another reason why I don't like reaffirmations (which can be rescinding prior to discharge or within 60 days, whichever is later) and especially don't like signing a lease assumption agreement. The former, at least, allows you to change your mind within a set number of days with the latter having no such temporary protections.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog


    I am not an attorney. Any advice provided is not legal advice.

    Comment


      #3
      Thanks, it is a lease assumption, and at the time I was not really thinking very clearly about my finances.. They are saying that since it is a lease assumption, I can not rescind it, even
      though the BKR has not been discharged. My lawyer is still researching my options. Actually I never signed it, my lawyer signed it, but the contract says it just needs his and/or mine.

      Comment


        #4
        Please let us know what your attorney discovers. In Florida, it's pretty clear that the lease assumption is binding. I believe that it's counterintuitive and against so many principles of bankruptcy to not allow the assumption to be rescinded during some rescission period. Maybe your attorney will find some technicality.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog


        I am not an attorney. Any advice provided is not legal advice.

        Comment


          #5
          Decisions on this issue go either way depending upon your district. Some hold that signing a lease assumption takes the obligation out of the protection of the Discharge. Others state that a lease assumption is not the equivalent of a reaffirmation agreement therefore the Discharge still applies.

          For a clearer understanding do a Google search of the following:

          "Does a personal property lease assumption have to be approved by the court."

          Des.

          Comment

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