HELP Reaffirmation

[RichS2192]

I filed Ch7 last year, I had a reaffirmation hearing, then cancelled the agreement that same day based on what the judge explained. I made a few payments on the car then told the lender to come get it, they never did. My CH7 was discharged and now the finance company has turned me over to a 3rd party collection company. Is this legal, can the finance company do this, what happened to my protection under ch 7??? The collection company is telling me that i'm screwed in essance and owe the money. Any help or suggestions would be appreciated!!!!

[HHM]

When you told the lender to come and get it, was that in writing and was that before or after your discharge.

[RichS2192]

Help Reaff

Done in writing, done after discharge.
Judge said that I don't need to do agreement under chapter 7, that if I keep making payments without agreement, they can't come take the vehicle.

Thanks

[HHM]

Sorry to say, if you turned the car over after discharge, the collection agency is right, you are screwed.

The judge is right, if you kept making payments, you don't really need to reaffirm becuase the car company only has a legal right to repo upon a default. (and BK does not count as default). What normally happens is that they Car Company files a Motion to Lift Automatic Stay during the Bankruptcy, and to resolve that issue, you grant them an Adequate protection order or reaffirmatio agreement.

However, since you kept your car through the BK, and only defaulted after discharge, they are going to hit you up for an deficiency balance (i.e. differnece between what you owe and what they can sell the car for at auction), and then can use every legal remedy to collect that balance.

[HRx]

Done in writing, done after discharge.
Judge said that I don't need to do agreement under chapter 7, that if I keep making payments without agreement, they can't come take the vehicle.

Thanks

That's correct if you're making monthly payments, the lien holder has no reason to repo the vehicle.

I dont understand your entire post. Where is the vehicle right now?

[RichS2192]

The car is in my driveway right now, where it's been since October last year.

I guess I don't understand. I rescinded the reaff agreement, which put the car back under Ch7 protection. I made payments to keep the car as the judge said and now I'm stuck because I did?? That doesn't make sense.

[HRx]

The car is in my driveway right now, where it's been since October last year.

Was the vehicle listed on your BK petition?

[RichS2192]

Corrected info

Todd,
Yes the car was listed on the BK petition, I checked my records, I did not make ANY payments on the car until AFTER discharge. That's when Arcadia kept calling me 4-6 times a day even after there was a cease and decist letter issued.

[HRx]

Technically, if the vehicle was listed on your stamped/dated BK petition you should be fine. However, you'll need to furnish proof that you terminated the "reaffirmation" contract. Most importantly, you're going to need to articulate why you started paying car notes after your BK has been discharged.

But to answer your question, based on the chain of events you presented, yes the lien holder can exercise thier collection rights. Primarily because you did things that were unusual for an individual that decided to forfeit a reaffirmation agreement.

Good Luck!

[RichS2192]

Todd, you are confusing me. First you are telling me that I'm fine then you tell me that they can still come collect after me... I know that you can't give legal advice, but do you feel it might be in my best interest to get everything together and present it to the collection company? Right now I've negotiated 25 cents on the dollar to get a clear title. Car is junk but I can always donate it to the association for the blind and get a receipt for blue book value.

[HRx]

Todd, you are confusing me. First you are telling me that I'm fine then you tell me that they can still come collect after me... I know that you can't give legal advice, but do you feel it might be in my best interest to get everything together and present it to the collection company? Right now I've negotiated 25 cents on the dollar to get a clear title. Car is junk but I can always donate it to the association for the blind and get a receipt for blue book value.

Rich,

Because you listed the vehicle in your BK petition that was stamped and discharge, makes you technically "good to go".

However, you just need to be able to articulate/prove to the creditor that you terminated the reaffirmation contract, and did so in a timely manner. Then you need to articulate why you started to pay your monthly notes when your BK was discharged. Despite the fact that you did a voluntary repo. You'll also need to articulate why you just allowed the lien holder to leave the car in your possession. You should've filed an abandonment claim against the lien holder.

Can you provide a logical explanation to the above? If you can, communicate this with the creditors.

Let me know if this clarifies my previous comments.

-Todd

[RichS2192]

Thanks Todd,
Now it's clear....

[HHM]

LOL, now its not clear to me. The chain of events as I understood them was this.

1. Car company offers Re-Affirmation before your BK is discharged
2. You were still making payments on the car DURING the BK (i.e. Before discharge)
3. Reaffirmation hearing is held, judge tells you that you don't have to reaffirm, and you decide not to. (meanwhile, you are still making payments
4. You recieve your discharge
5. You make a payment or two
6. You inform car company that you don't want the car, and stop making car payments.

Is that basically what happened.

[RichS2192]

HHM
I stopped making payments in January
Filed in February
Ref Aff in March, then cancelled in May Prior to Discharge like the form says
Discharged in May
Made payments in June, July, August
then told the to come get the car. Lender even told me that as long as i made payments they would not come repo the car. Have it all documented with dates and times, hard not to since once I was discharged they called 4-6 times a day.

[RichS2192]

HHM help

HHM
Did that response make any sense to you???