Expert: Mark J. Markus- California Bankruptcy Attorney - 9/6/2008

Question
After signing reaffirmation agreement, we realized that it wasn't feasible to keep a 2000 model vehicle with 110K miles & $11K loan balance @18.90% rate.  Our Chapter 7 discharged (FL) on June 13th, 2008 but re-affirmation agreement was not filed with courts until June 16th, 2008.  We contacted creditor and told them our intent to rescind on reaffirmation agreement, but of course got the run around.  They said we couldn't do that since we were longer in BK, but I was not satisfied with the rude and bullying response I got from creditor.  I know we were within our 60 daysfrom the time it was filed with the courts to rescind on reaffirmation agreement, so we went to the clerk of courts and filed a letter of intent on June 13th, 2008 to rescind reaffirmation agreement.  We would like to know what we should do now with the vehicle as we no longer wish to keep it.  Even though we recinded on our reaffirmation agreement, I was told by the creditor that they would consider the vehicle a repo and charge us deficiency balance & place lien against us if we give the car back!  Everything I've read, does not draw a clear picture as to what happens after the recission is filed and creditor has been notified in writing.  Should we call and have them pick up the vehicle or wait until they pick it up?  What is our financial obligation?  Your advice is greatly appreciated.
Thank you!

Answer
I would just call and have them pick up the vehicle, or return it to a dealership.  If the rescission was done timely and properly, you should not owe anything except, perhaps, amounts incurred during the time the reaffirmation agreement was in place (rental value, etc.)

Actually, I'm not even 100% sure the reaffirmation agreement is even valid because it wasn't filed prior to the discharge being entered, but I'd have to research that issue.