Reaffirmation, Case Closed without Discharge, Repossession
Posted: Mon Apr 22, 2013 3:21 pm
Hi, all,
A debtor came into the Self-Help Desk today because his case had been closed without a discharge because the financial management certificate and Form B23 were never filed.
Prior to the case closing, the debtor's then-attorney filed a reaffirmation agreement on a car. The attorney signed off on the reaffirmation agreement, so there was no hearing.
About a month after the case was closed with a discharge, the lender, Capital One, repossessed debtor's vehicle, saying that because the case had closed without a discharge, they had the right to repossess. Debtor was current on payments.
Capital One also told the debtor that if he reopened his case, filed the FMC and Form B23, and got his discharge, they would let him have the car back, subject to storage fees.
Has anyone encountered this situation? Is Capital One correct that they had the right to repossess because the case had closed without discharge?
Thanks,
Christian
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