Central District Consumer Bankruptcy Attorney's Association

Why not sign and treat it as a reaffirmation with better terms than the original note?
File the reaff and sign it so the court won't set a hearing.
d
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On Jul 3, 2013, at 9:32 AM, "sambenevento" wrote:
> If the dealer and lender are not requiring court approval (which is odd) then perhaps your position should be that the Debtor is not obtaining new financing - but is simply amending the existing installment sales agreement with the dealer. Such an amendment is arguably not new financing secured by property of the estate and would arguably not require approval under section 364, although you would probably have to amend J and 22c and presumably D. As an aside, in these situations I try to wait to file until the clients receive their first statement or payment book. I once got caught up having to argue that the Dealer should have to hold and service the paper where they tried to rescind after the 10 days had run but before the paper was placed with a lender. It was ugly.
>
> --- In cdcbaa@yahoogroups.com, "Hank Paloci" wrote:
> >
> > Debtor, in a case I filed yesterday, purchased a car about 10 days ago (prepetition). Debtor's existing car wasn't going to make it through the case.
> >
> > The dealer just contacted Debtor today and advised that they can't place the loan. Dealer demands that Debtor/buyer come in and sign new loan docs. Dealer says that in CA they have the right to cancel the transaction if they can't place the loan in.
> >
> > I am reasonably sure that the BK filing is not the reason why the dealer couldn't place the loan.
> >
> > The new loan is actually a better deal. Dealer found a sympathetic lender and is bending over backwards -- they are willing to make the loan 6 years instead of 5, lower the interest rate, and lower the sale price to make the payment about what it was going to be on the original deal. If it weren't for the BK filing, Debtor would sign in a heartbeat.
> >
> > I don't think we can amend the loan docs now without leave of court. Can anyone think of other options?
> >
> > Thanks. Replies appreciated.
> >
>
>

The post was migrated from Yahoo.

If the dealer and lender are not requiring court approval (which is odd) then perhaps your position should be that the Debtor is not obtaining new financing - but is simply amending the existing installment sales agreement with the dealer. Such an amendment is arguably not new financing secured by property of the estate and would arguably not require approval under section 364, although you would probably have to amend J and 22c and presumably D. As an aside, in these situations I try to wait to file until the clients receive their first statement or payment book. I once got caught up having to argue that the Dealer should have to hold and service the paper where they tried to rescind after the 10 days had run but before the paper was placed with a lender. It was ugly.
>
> Debtor, in a case I filed yesterday, purchased a car about 10 days ago (prepetition). Debtor's existing car wasn't going to make it through the case.
>
> The dealer just contacted Debtor today and advised that they can't place the loan. Dealer demands that Debtor/buyer come in and sign new loan docs. Dealer says that in CA they have the right to cancel the transaction if they can't place the loan in.
>
> I am reasonably sure that the BK filing is not the reason why the dealer couldn't place the loan.
>
> The new loan is actually a better deal. Dealer found a sympathetic lender and is bending over backwards -- they are willing to make the loan 6 years instead of 5, lower the interest rate, and lower the sale price to make the payment about what it was going to be on the original deal. If it weren't for the BK filing, Debtor would sign in a heartbeat.
>
> I don't think we can amend the loan docs now without leave of court. Can anyone think of other options?
>
> Thanks. Replies appreciated.
>

The post was migrated from Yahoo.

Debtor, in a case I filed yesterday, purchased a car about 10 days ago (prepetition). Debtor's existing car wasn't going to make it through the case.
The dealer just contacted Debtor today and advised that they can't place the loan. Dealer demands that Debtor/buyer come in and sign new loan docs. Dealer says that in CA they have the right to cancel the transaction if they can't place the loan in.
I am reasonably sure that the BK filing is not the reason why the dealer couldn't place the loan.
The new loan is actually a better deal. Dealer found a sympathetic lender and is bending over backwards -- they are willing to make the loan 6 years instead of 5, lower the interest rate, and lower the sale price to make the payment about what it was going to be on the original deal. If it weren't for the BK filing, Debtor would sign in a heartbeat.
I don't think we can amend the loan docs now without leave of court. Can anyone think of other options?
Thanks. Replies appreciated.

The post was migrated from Yahoo.