Reaffirmation of one car and chapter 7 filing

[tools2teach]

My wife and I filed for chapter 7, but in order to qualify we had to keep the house and our two cars in order to qualify. Our intentions are to surrender the house and give up the 2 cars after the discharge. Now, I come to find out that that if I don't reaffirm one of the cars they can go after us with a law suit to pay the car in full. Both are cars are leased and I was told this could affect our chapter 7 filling as well as greatly effecting our future of rebuilding our credit. At this point in time we had filed and had our 341 and it;s been 30 days. Please advise.

[mamaluv]

Someone gave you some incorrect information...if you did not reaffirm the cars, you are not responsible for anything once discharged.

[starr4law]

Who told you this? Your lawyer or the lender for the vehicle? Be very wary of what lenders tell you - they often lie and/or are misinformed regarding bk laws.

No one can "force" you to reaffirm. In fact, a Judge can deny a reaffirmation if they do not believe that it is in the debtors best interest. Is there a relief from automatic stay in place/filed on behalf of the lender?

[tools2teach]

It was a paralegal who told me this. I couldn't get my post bk consultant to call me back or email us, so I called another firm to get more information. Is true that after the discharge, we would prolong the process of rebuilding credit? She said it looks very bad when you stop paying on your obligations after the discharge.

[starr4law]

In theory, the credit bureau should simply list the vehicles as "included in bankruptcy." However, that is not always the case. In order to speed up your access to credit after discharge, think about doing a round of credit repair as soon as you receive your discharge order. Forward a copy of Sch D, E, and F along with your MOC notice and your discharge order to each major credit bureau asking that they appropriately update your reports and also ask them to send you a copy of the "new" reports once they are finished. Then go ahead an dispute any items that are still wrong on your credit reports. I don't want to second guess what the paralegal said since I do not know all of the facts, but something seems hinky . . .

Good luck!