Legal Question in Bankruptcy in Florida

Re: Reaffirm

Failing to list a creditor on your bankruptcy schedules is very serious. You have certified that the content of your schedules is complete under penalty of perjury. This carries a penalty of up to $500,000.00 in fines and/or 5 years in prison. Presumably, you have also failed to list the car on your schedules, which will stand out like a sore thumb to the Trustee. In case I haven't been clear so far, you are in trouble.

You will need to amend your schedule B, schedule D, and Statement of Intentions to reflect the correct information. There is an additional filing fee for adding a creditor. If your case has already been discharged, then you may need to reopen your case, which is another fee. If you fail to do anything about this, the lender WILL repo the vehicle.

As to the reaffirmation agreement, the creditor is permitted to contact you about your intentions regarding the car, as they have a security interest in the vehicle. You need to either reaffirm (keep the car and pay the loan), surrender the car (turn over the car to the lender and the discharge will extinguish the debt), or redeem the vehicle under section 722 of the Bankruptcy Code.

You need to retain counsel immediately or at least amend your schedules and spend the next day or two intensely researching sections 506, 524, and 722 of the Bankruptcy Code. Try http://www4.law.cornell.edu/uscode/11/usc_sup_01_11.html. You can also use our website as a research point. Check out our Glossary at www.LaBellaLaw.com.