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Cooksey, Reaffirmation Agreements and Co-Signers....
Wwe always list a vehicle that is co-signed as being surrendered. Never had an issue with repo. No way would I counsel my client to sign that reaff.
M. Erik Clark
Borowitz, Lozano & Clark, LLP
100 N. Barranca Avenue, Suite 250
West Covina, CA 91791
www.BLClaw.com
Office: (626) 332-8600
Fax: (626) 332-8644
Board Certified in Consumer Bankruptcy
American Board of Certification
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E mail exchange with our friends... they want the Debtors to sign a reaff on a vehicle for which they are co-signers...I say not necessary. Which of us is correct?
Dear Mr. XXXXXXXXX
I have a copy of this reaffirmation agreement in front of me for my clients XXXX & XXX XXXXXXXXX. This particular vehicle is a Jeep Liberty for which I believe XXXX co-signed for her daughter. In other words, it is the daughters car, the daughter is on the contract and she makes the payments. If you could get back to me and verify that this is the case, that would be most appreciated. If so, and I'm sure you would agree, I do not see any necessity for my clients to sign this reaffirmation agreement, since the daughter is not the debtor, is still liable under the contract, is still making the payments, and of course is not bound by In re Dumont as far as any rights to repossess the vehicle for failure to sign a reaffirmation. Again, if I am mistaken, please let me know. I look forward to hearing from you.
Todd Mannis, Esq.
Response:
Todd,
I just got your voice mail.
Chrysler requests that the co-signer enter into a reaffirmation agreement since bankruptcy of any party under the contract is considered an event of default. That said, I am not aware of Chrysler ever repossessing a car when only the co-singer has filed for bankruptcy and the account is current (but they still maintain their right to do so).
I will have to verify with Chrysler, but I believe that once any party on the contract declares bankruptcy the account is put into bankruptcy status, which among other things means that statements will no longer be sent out.
I hope that that answers your questions, if not let me know.
Very truly yours,
XXXXXX
OK, I'm not buying this. Non-filing daughter is on the contract, she didn't file for bankruptcy, and is current. Seems if the vehicle was repo'd, she'd have a hell of a claim against Chrysler. Also, I was thinking, could this be handled by simply amending the Statement of Intention to "surrender?" That way, the DEBTORS are surrendering any interest THEY have in the vehicle, and basically this contract is between Chrysler and the daughter. Thoughts?
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