Expert: Mark J. Markus- California Bankruptcy Attorney - 10/13/2009

Question
I filed a chapter 7 bk in CA Central on 6/20/2009.  The statement of intent identified two rental properties a vehicle with 8 payments left on it and a recreational trailer.  This is a joint filing.  We are separated and representing ourselves through the bk process.  

At this time we have missed the time period to file the reaffirmation agreements.  The vehicle is in possession of my wife and she has paid on time.  The car financier does not seem to care about the agreement and will accept payments.  They are a national car manufacturer.  I have not been able to get any agreement from the bank on the recreational vehicle.  I thought I would be able to continue to pay but I have decided to surrender it.  

Should the statement be amended?  Will the court schedule a hearing prior to discharge even though there are no reaffirmation agreements on file?  If I don't surrender prior to discharge I believe I will be subject to a possible deficiency.  Is that correct?

Thank you.

Answer
A reaffirmation agreement can be filed any time prior to discharge in a CHapter 7 case.

If you don't do a reaffirmation agreement, then you can surrender the collateral (vehicles in your case) at any time without further obligation.

You don't need to amend your statement of intention.

I tried to answer all the questions you asked that I understood, but please let me know if there was anything further.

http://www.bklaw.com/