ReAffirmation, Lease Issues need help

[Klesko]

I filed for and was discharged from BK7 Dec of 2009. I had a leased car with VW credit and on the filing said I plan to keep the car. Everything went smooth during the case and I never got the reaffirmation papers and thought I was on a ride through with the car. Meaning as long as I paid on it I could keep it but could turn it in anytime after the BK because I was no longer liable for that debt. About march I called VW and spoke with their BK department telling them I wanted to turn the car in since it was part of BK and the lady said that was fine. I asked her if I would be liable for any amount and she said since I didnt reaffirm I would not be liable. They came and picked up the car a few weeks later.

Time passes and I have cleaned a lot of my credit up, got a few new cards and loans and even got most of my scores into about the 640 range. A week or so ago I get a call from VW credit asking how I want to pay for the amount owed for turning the car in, its about 5k. I explained I did not owe it because I never signed the reaffirmation agreement. He then faxed over an assumption of lease document which was faxed from my lawyers office with my signature. I honestly never remember signing this form. I checked with my court filing online and this document is not filed with the court. A few days later VW updates my account with the three CBs with an amount of 5k past due. The past due amount tanks my scores to about the 560 range. If I had known this would happen I would have just kept the car, it only had 12 months left on the lease at $400 a month which wasn't bad.

After some more research I found there is a bit of a gray area when it comes to BK law and leases. A normal car loan must be reaffirmed, meaning you have to sign a reaffirmation agreement and file it with the court and the BK judge has to approve it. However in some leases all you need is a signed lease assumption document which does not need to be filed with the court.

What should my course of action be here?

[SMinGA]

Reaffirmations are only for loans, not leases. Leases must either be assumed (meaning you will keep it) or rejected (turn it in). If you assume it, you are responsible for all fees including mileage over your allotment and such.

You assumed the lease - you are responsible for the bill unfortunately. Lease assumption does not have to be filed with the court. Putting it in writing, and keeping the car - would be enough. If you were going to reject it, I believe you would have needed to turn it in while your case was still open. It may have been a situation where you signed many things at once in your atty's office and did not pay close attention to each one. Since you said you were keeping the car, the atty gave you something to sign to that effect. The atty should have made sure you understood the difference between lease & loan, but its too late to correct that now.