Unsecured car payment & Ch 7

[Geow]

I filed for Ch 7 in Dec 09 and was dicharged in Mar 10. When I filed for Bk, the lien holder on my car sent me a nice letter stating that they had no Chattel security agreement on file and wanted me to sign a new one. I told my attorney and he said dont sign anything. He requested to have them send an agreement. They sent some doctored up agreement ( I believe, and a good one at that), They have been sending me letters for the last year trying to get me to sign another one claiming they do not have one on file. I did reaffirm the debt, but it was based on a fraudulent document (or so I beleive) that they provided. I was going to send them a letter to asking them to provid an original signed document or relieve me of the obligation......any thoughts?

[despritfreya]

If you have not received the Discharge and/or are within the 60 days since the Agreement was filed (which ever is later) RESCIND the Reaffirmation Agreement. If the lender failed to properly perfect its lien and, assuming you did not commit any fraud that resulted in the failure to perfect, the lender is UNSECURED. Further, payments made within 90 days prior to filing are preferential and can be recovered by the Trustee. Unfortunately (and assuming you can RESCIND the Reaffirmation Agreement) the voluntary payments you made after filing I do not believe are recoverable by you.

Lastly, since there is no lien on the vehicle you now need to make sure it is fully exempt. If it is not fully exempt you need to make sure the exemption has been maximized to reduce any recovery by the Trustee if he/she attempts to liquidate the unencumbered asset.

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Never mind. I failed to see the timing. This becomes a very interesting issue. Can you get out from the Reaff.? I do not know. Can the Trustee (who apparently did not investigage the validity of a lien) reopen the case to administer what may now be a non-exempt asset and recover the preference. He probably can but probably won't.

Either way, it seems you will have to reopen the case to somehow see if you can rescind the reaff. Keep us posted.

Des.