I have a leased Camry Hybrid, Chapter 7 filing (filed 8/11/2009, discharge granted 11/23/2009) stated I would keep the car and continue payments (never delinquent at filing). The Statement of intention listed the debt as both a secured debt (retain property, continue making payments withou reaffirming), and a lease (lease will be assumed).
I have a service that lets me see my credit scores and reports monthly, and notifies me of activity. My credit reports have all continued to reflect monthly payments and paid as agreed status on the lease, until Toyota Finance reported the lease as IIB in April 2010.
I spoke with them Friday, and their position is that the notice of bankruptcy was sent to the "wrong" address and they "just" learned of the filing, so they are "required" to treat this as a discharged BK. Because I didn't sign an assumption agreement, even though I filed notice that I would assume the lease in the Chapter 7 petition, they will not report my payment status.
The car is in great shape and only slightly "upside down", and under on lease mileage. I had intended to keep paying it out and execute the buyout in December 2012 to keep it another 3 or 4 years. The payment is over $700/month. But if I won't get the payments reported to help rebuild my credit I have to seriously consider turning it in and getting a "beater" to drive (good thing I drive low mileage). Take a small loan to buy it, or borrow against it after purchase to get payments reported to rebuild credit.
Questions:
Is an assumption agreement really required? Why isn't the statement of intent in the filing sufficient?
If required, is the assumption agreement subject to the same requirement for court approval prior to the discharge that would apply to a reaffirmation?
Does the law really require the car companies to stop reporting payment status post-discharge if loans / leases aren't reaffirmed, or is this something they do to try to pressure debtors to reaffirm (which debtor attornerney's recommend against)?
Does anything prevent Tpyota Finance from selling me the car and financing the sale if we can negotiate a purchase price and loan terms?
I have a service that lets me see my credit scores and reports monthly, and notifies me of activity. My credit reports have all continued to reflect monthly payments and paid as agreed status on the lease, until Toyota Finance reported the lease as IIB in April 2010.
I spoke with them Friday, and their position is that the notice of bankruptcy was sent to the "wrong" address and they "just" learned of the filing, so they are "required" to treat this as a discharged BK. Because I didn't sign an assumption agreement, even though I filed notice that I would assume the lease in the Chapter 7 petition, they will not report my payment status.
The car is in great shape and only slightly "upside down", and under on lease mileage. I had intended to keep paying it out and execute the buyout in December 2012 to keep it another 3 or 4 years. The payment is over $700/month. But if I won't get the payments reported to help rebuild my credit I have to seriously consider turning it in and getting a "beater" to drive (good thing I drive low mileage). Take a small loan to buy it, or borrow against it after purchase to get payments reported to rebuild credit.
Questions:
Is an assumption agreement really required? Why isn't the statement of intent in the filing sufficient?
If required, is the assumption agreement subject to the same requirement for court approval prior to the discharge that would apply to a reaffirmation?
Does the law really require the car companies to stop reporting payment status post-discharge if loans / leases aren't reaffirmed, or is this something they do to try to pressure debtors to reaffirm (which debtor attornerney's recommend against)?
Does anything prevent Tpyota Finance from selling me the car and financing the sale if we can negotiate a purchase price and loan terms?
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