[CNYBBA-LISTSERV] Reaffirmations.

[Louis L. Levine]

 Section 521(a)(6) says merely that the debtor shall "not retain possession" of the vehicle without reaffirmation or redemption, and in a very real sense the father is not actually retaining possession; the real answer appears later in the subsection: the penalty for failure to reaffirm or redeem is merely termination of the automatic stay so that the creditor can exercise his remedies under state law;    if the contract is paid to date there is no default and the creditor can't repo anyway; even if the payments are in default, state law permits the obligor to reinstate merely by paying the arrears; on the other hand, if the note or retail installment contract contains a provision that the failure of any obligor to reaffirm is an event of default, then the creditor could probably assert that provision as a basis to repossess
 

MELVIN & MELVIN, PLLC 
Louis Levine, Esq. 
217 South Salina Street 
Seventh Floor 
Syracuse, New York 13202 
315-422-1311 voice 
315-479-7612 fax 
llevine at melvinlaw.com 

-----Original Message-----
From: cnybba-bounces at cnybba.org [mailto:cnybba-bounces at cnybba.org]On Behalf Of TampaStomp at aol.com
Sent: Wednesday, June 07, 2006 4:43 PM
To: cnybba at cnybba.org
Subject: [CNYBBA-LISTSERV] Reaffirmations.



Question:
 
    Father and son are on title to car and are co-obligors.  Father files Chapter 7 Bankruptcy.  Does father need to sign reaffirmation agreement?  Son is in possession of car and is making the payments.  If father does not sign reaffirmation agreement, may lender repossess the car from the son?
 
    Your thoughts are appreciated.
 
Russell

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