Legal Question in Bankruptcy in Pennsylvania

questionable reaffirmation

My husband and I filed chapter 7 bk in Sept 2006 (under new laws). It was discharged in January 2007. On the petition, we listed both our vehicle loans, as well as some credit cards. We never signed any reaffirmation agreements, just continued to pay on the vehicle loans so we could keep the vehicles. I have recently lost my job, and my husbands company just voted in a not-so-good new contract. So, we may need to let at least one vehicle go back. I am being told by the creditor that it doesn't matter that we didn't sign a reaffirmation agreement, and that our continuing to pay is itself reaffirmation. How accurate is this? Can I give the vehicle back without them having recourse against me? Our bank accounts are with the same bank that holds the loans, so I also need to make sure they cannot freeze my accounts. Thanks so much!


Asked on 11/13/07, 2:34 pm

1 Answer from Attorneys
John Gibson John W. Gibson, Esquire

Re: questionable reaffirmation

The fact that you didn't sign a reaffirmation agreement helps your situation, I think. The standards for reaffirmation are a lot tougher under the new laws. I think that any attempt to collect a deficiency would be subject to the discharge injunction and you would have a defense. You should probably call the attorney that handled your bankruptcy for a more complete answer.

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Answered on 11/24/07, 3:05 pm


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