Legal Question in Bankruptcy in Iowa
Reaffirmation Agreements
I filed bankruptcy 3 years ago, and at that time I made a reaffirmation agreement with a law firm that was representing one of my creditors. Since then, I've had a difficult time making my monthly payments. Recently I got into a real bind due to my car dying and needing transportation, so I ended up having to sell the property that I had the reaffirmation agreement on in order to make the auto repairs. I know that if I should stop making these agreed upon monthly payments, that they could take this property away from me. What I'm wondering, is if I should stop making the payments and I don't HAVE this property, what would be the repurcussions? I have tried my hardest to follow through with this agreement, but luck has not been on my side whatsoever.
1 Answer from Attorneys
Re: Reaffirmation Agreements
You sold collateral subject to a security interest, and you did it knowingly. This may in fact be a crime, and it is at least the tort of conversion. As this tort occurred post-bankruptcy, it is not discharged. You would owe the full amount.
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