Expert: Terry Leeders - 7/26/2007

Question
QUESTION: In 1996 I filed for Chapter 7 bankruptcy. I signed an affirmation agreement with the bank on a mobile home I had just bought on a 20 year loan. I have made all the payments. I want to file Chapter 7 again (2007).  Can I surrender the Mobile Home - or am I stuck with it beacause of the reaffirmation agreement from the 1996 bankruptcy??
Thank You,
Jim Gagel

ANSWER: Hi Jim,

IF you file a chapter 7 again, you can surrender the asset to the creditor.  They will auction it off to recoup what they can, then the deficiency would be discharged in your new case.

The new bankruptcy would supercede the 1st reaffirmation...just don't reaffirm again :)

---------- FOLLOW-UP ----------

QUESTION: On Form 22C Chpt7 Means Test, would the mobile home bank payment be included on line 42, listing secured debts? In other words, do I list all secured debts on line 42, including the ones I plan to surrender or only those I plan to keep?
Thank You,  Jim Gagel

Answer
Hi Jim, that is subject to court interpretation in your area.  In IL. we list down all payments to secured debts within the next 60 days to calculate that for ALL secured debt regardless of intention...but I only know that is the caselaw in IL. Check with your lawyer to help you.