I've seen some cases filed under the new laws that, on the Debtor's Statement of Intentions, for things such as a car with a loan, lawyers are using "Debtor will retain collateral and continue to make payments". I thought under the new law, you had to reaffirm. Correct me, please.
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That is my understanding as well...
2 things though... Attorneys are still learning the new laws and some may be stuck in old habits. Then, even for those who list 'reaffirm' as an intention, I doubt anything would happen if they DON'T reaffirm. Its not like the BK court can force the lender to take the car back, and the lender won't want it back if the person who filed keeps payments up...Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision. -
Ok, so if my wife files pro se, we have 2 car payments and 2 mortgages, does this mean we would have 4 reaffirmation hearings to attend? My understanding is that when you file pro se, the court must conduct a hearing to determine your benefit for reaffirming a debt.Comment
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This is one of the changes of the new law. We discussed it today during a Consult. The attny said under the old law, he would waffle with the Court for his clients, sign at the very last minute, and then withdraw after the discharge.
Thanks to you guys, I knew the answer to that one. So they could keep the car by making the payments, but if the engine blew, they could give it back with no problems and it would still be considered discharged. If the roof fell in, they could give the house back and it would still be considered discharged. Etc, etc, etc.
Not under the New Law. The debtor must state their intentions, sign, and stick to it. It must be declared before discharge and there is no going back once you decide. At least that's what the attny said today.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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I'm working with a demo copy of BestCase (nice software, btw.) and they still list the choice to "Retain and continue making payments". Is this still a viable option if you state that in your intentions, or must you reaffirm everything secured?Comment
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