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Bankruptcy Law/Reaffirmation

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Expert: - 3/2/2010


Question
We are filing pro se in Riverside County and need to keep our two vehicles (6 adults at home).  We are upside down on the loans and are considering reaffirmation.  Are we required to file an agreement under section 521 or will the court accept a "pass-through" arrangement?  There is an "other" box on the Statement of Intention, which leads me to believe in the pass-through option.  The lenders have both said they will not repossess absent a reaffirmation.

Thank you in advance.

Jim

Answer
There is no pass through option anymore.  If you are comfortable believing your vehicle lenders that they will NOT repossess after bankruptcy if you remain current with payments and do NOT do a reaffirmation agreement, then the way to do it is simply list on the statement of intention that you plan to reaffirm, and then just don't (but be sure to continue making your payments).

If you do want to do a reaffirmation agreement, it needs to be signed and filed with the court prior to your discharge, and there will need to be a hearing set for you to go in and see the Judge to determine if it will be approved or not.

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Mark J. Markus- California Bankruptcy Attorney

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Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

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Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

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    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

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    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

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    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

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