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Bankruptcy Law/Reaffirmation and Credit Report
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Question
Our Chap 7 bankruptcy will be discharged in a couple weeks. We have a 2005 Chevy Trailblazer that we are current on payments and want to keep. Would you recommend a reaffirmation agreement to take this out of the bankruptcy? The reason I ask...If we don't reaffirm it will stay in the bankruptcy and not show on our credit report that we have never missed a payment, if we reaffirm it will show on our credit report that we have always made the payment. Am I correct here? Also, do you recommend reaffirming our house...we are also current on that and have never missed a payment. I appreciate any feedback and sorry for the long question. Thank You.
If you filed bankruptcy on or after 10/17/05, (the effective date for filing a case under the new law), the lender on your vehicle may, at their option, repossess your vehicle after you get your discharge unless a reaffirmation was filed and effective. Some lenders enforce this, others don't. Reaffirmations are not required on mortgages. You are correct that the loans will probably not show any positive payment history on your credit if you don't reaffirm. I suggest you get guidance immediately from an experienced local bankruptcy attorney so that you will get advice that is appropriate for your specific circumstances, (as I do not know anything about about your personal finances).
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Answers by Expert:
Los Angeles Bankruptcy Lawyer Leon D. Bayer
Expertise
Leon Bayer has successfully represented clients in bankruptcy for over 30 years. He is frequently called upon by the media, the California Bar and other associations to provide insight and help educate attorneys on bankruptcy issues. If you or other readers want to keep up with my blog postings about life in and out of bankruptcy, you can follow my blog at http://www.bankruptcyblogger.org/ and my personal web site at http://www.debt-relief-bankruptcy.com and A Human Guide to Bankruptcy at http://www.thebankruptcyguide.net/ Leon also writes about bankruptcy law for Nolo, see http://www.nolo.com/law-authors/leon-bayer.html and his "Ask Leon" bankruptcy law blog column at http://blog.nolo.com/bankruptcy/
Experience
Leon is a Certified Specialist in Bankruptcy Law by the State Bar of California, and has been a practicing bankruptcy lawyer in Los Angeles, California for 33 years.
Organizations
National Association of Consumer Bankruptcy Lawyers, California Bar Association, Los Angeles County Bar Association.
Publications
Author, ?The Essentials Of Chapter 13,? Daily Journal Report, December 18, 1987.
Contributing Editor, Basic Bankruptcy, California Practice Handbook, Matthew Bender 1992, 1993.
CEB Consultant, CEB-Personal and Small Business Bankruptcy Practice in California, 2003.
Education/Credentials
B.A., J.D.
Awards and Honors
President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory
Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000
MR. BAYER SAYS: The big banks and credit card companys have been working overtime for many years to undermine the Consitutional right of the American people to be able to claim bankruptcy protection. In 2005 the banking lobby successfully convinced Congress and the President to make the laws and proceedures more complicated, hopeing that it will stymie legitimate people from filing bankruptcy. They succeeded in gaining these complex new legal proceedures by greasing the legislative system with hundreds of millions of dollars in "campaign contributions." The good news for the American people is that while the new laws have made the proceedures needlessly complex to the point where inexperienced people can't help but trip over the maze of new rules and regulations, the process is still doable, especially with a lawyer who is well trained and experienced in this specialty.
Past/Present Clients
I have probably handled something on the order of about 15,000 bankruptcy cases thropughout my career.
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