This is from our consumer bankruptcy listserve, bankruptcy attys only, names have been withheld to protect the innocent.
Question (from consumer bk atty): I filed a Chapter 7 for client. Ford sent their letter saying to sign a reaffirmation agreement or they will repo the car. Has anyone had Ford actually repo cars with no reaffirmation agreement?
Answer No. 1: Yes…especially if they’re represented by Cooksey Toolen in Costa Mesa.
Answer No. 2: Definitely. Watch out for Ford!
Comment from Hale Antico, President of our group:
I think the conventional wisdom is only Ford/Cooksey will go after a failure to reaffirm, but it’s still best practice to reaffirm, coupled with the next sentence. If the court disapproves it, we’re back to pre-BAPCPA ride-through. I know of no example of a repo after a court disapproval where debtor remained current.
Credit Unions won a reaff carve-out at 524(m)(2).