Legal Question in Bankruptcy in Wisconsin

Post Bankruptcy Payments on Retained Leased Auto

I would certainly not second guess your lawyer, since he knows your case much better than I do. Generally speaking, however, unless you want to revive an old contract in this situation, I would certain recommend against signing anything other than a receipt for the car when you drop it off. Signing a new contract or surrender agreement long after your bankruptcy is closed can potentially create a brand new obligation under common law, even though bankruptcy rules technically require a reaffirmation in order to accomplish a full reinstatement. Honda would certainly prevail in a claim that you owed at least some reasonable market rental price under common law for the number of days you used the car after bankruptcy and you would likewise be likely to prevail in an argument that your post bankruptcy payments satisfied this obligation. Meanwhile, if the lender is leaving you alone and accepting your payments (and proof of insurance) and you would like to keep the car, why rock the boat? Unfortunately, I do not understand whether you wish to keep the car (and make the payments) or give it back, so it is truly difficult to advise you. Looking at it as an implied contract based upon your continued making of payments after bankruptcy and their acceptance of them is a reasonable view. However, you may be able to argue that adverse parts of the contract as surrender charges and early termination fees no longer apply after your bankruptcy. If you want to keep the car, it may be possible to reopen you bankruptcy and get permission to file a late reaffirmation agreement. Technically speaking, however, the bankruptcy court can deny your discharge for failing to carry out your promises with regard to reaffirmations. Good luck!