Expert: Mark J. Markus- California Bankruptcy Attorney - 5/16/2007

Question
QUESTION: Mark, my bankruptcy was discharged last week. My lawyer's office failed to send the re-affirmation paperwork to us. The Finance company has sent our lawyer's office paperwork concerning the re-affirmation, but as mentioned the lawyer failed to include it in the case. My understanding is that the case has not been closed. The finance company says for us to re-open the case and include the re-affirmantion. We mentioned this to our lawyer, but his stand is that it will cost him and that most likely the judge would not sign it.

I believe that my lawyer failed to have due diligence, and should cover the cost of the reopening, and that most likely the judge will sign.

Please advice
ANSWER: Well, I'm not even sure you can reopen a case to do a reaffirmation.  You would likely also have to have your discharge revoked, and then re-entered.  I can't even fathom it being worth it.   Who is the finance company and why would you want to do a reaffirmation agreement?  All that does is obligate you to make payments and if you default, you will owe the full balance to the vehicle creditor.  Unless it's Ford Motor Credit, you're probably better off just staying current on the payments.   There's always some risk that they will repossess, but in my experience that is a worthwhile risk because reaffirmation agreements are horrible ideas.

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

QUESTION: yes, it is with ford. The car has $4000 of equity according to Blue Book. It's 2004 mpv with 27,000 miles, and the payment is a low $274.00

Answer
Ahh, well, yea if it's with Ford you need to do a reaffirmation agreement....or sell it.  Most attorneys' retainer agreements exclude dealing with reaffirmation agreements, and I personally refuse to sign them.  My clients have Ford (or whoever) file the agreement and schedule the required court hearing.   In any event, I have no idea whether in your jurisdiction there is a likelihood of being able to reopen the case for that purpose, but you can always try.  As to who should pay for that, that will depend on the contract you have with your attorney.