Hi Brett,
I've read it over and over, that if a person does not reaffirm a
secured debt (in this case a vehicle) in a state that allows 'walk
throughs', that 1)the debt is discharged, 2) you keep the vehicle as
long as you keep up the payments and 3)should you decide to walk away
from it or default, the debtor bears NO liability for any of the debt
ever again - not for any deficiency or auction/repo fees.

Is there something in the bankruptcy code (I often refer to it but I'm
not a lawyer) or case law, or Senate commentary, SOMETHING that
supports this ? I do understand that all personal liability goes away
with the discharge. I also know that BK law permits you to voluntarily
pay back on a discharged debt. Keeping up payments on a car loan, with
no reaff, on a dicharged debt would then be considered voluntary
payments would it not ?

There is a discussion with someone who insists that continuing to pay
on a car loan post-discharge, w/o a reaffirmation, still equates to a
new 'obligation' to pay, and that once the car was repo'd, the
creditor could then go ahead and sue for the deficiency. He will not
back down from this stance unless those of us who disagree with him
can come up with legal precendent, case law, Rule or Code to refute
his position !

The bankruptcy (not mine) occurred in Minnesota, and walk-through's
are allowed.

If you can suggest something, or point me in the right direction for
this kind of backup, it would be much appreciated. :)

TIA !

> I've read it over and over, that if a person does not reaffirm a secured debt (in this case a vehicle) in a state that allows 'walk throughs', that 1)the debt is discharged, 2) you keep the vehicle as long as you keep up the payments and 3)should you decide to walk away from it or default, the debtor bears NO liability for any of the debt ever again - not for any deficiency or auction/repo fees. Is there something in the bankruptcy code (I often refer to it but I'm not a lawyer) or case law, or Senate commentary, SOMETHING that supports this ? I do understand that all personal liability goes away with the discharge. I also know that BK law permits you to voluntarily pay back on a discharged debt. Keeping up payments on a car loan, with no reaff, on a dicharged debt would then be considered voluntary payments would it not ?

Correct.
There is a discussion with someone who insists that continuing to pay on a car loan post-discharge, w/o a reaffirmation, still equates to a new 'obligation' to pay, and that once the car was repo'd, the creditor could then go ahead and sue for the deficiency. He will not back down from this stance unless those of us who disagree with him can come up with legal precendent, case law, Rule or Code to refute his position !

He's wrong. Why not ask him for something that supports his position (in a
post-bankruptcy context, of course. General cases dealing with payments
restarting the statute of limitations and the like aren't relevant here.)
The bankruptcy (not mine) occurred in Minnesota, and walk-through's are allowed. If you can suggest something, or point me in the right direction for this kind of backup, it would be much appreciated. :)

Take a look at 11 USC 524 (Effect of Discharge) at
http://www.gamb.uscourts.gov/fedr/bank5h4p.htm. You may also want to Google
this section; you'll probably find some cases that talk about this issue.

--
Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@brettweiss.com *
* http://www.brettweiss.com *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only. It isn't
meant to be legal advice and you shouldn't treat it as such. If you want
legal advice, speak with a local lawyer familiar with your state's laws who
can review *all* of the facts and the law applicable to your situation.
************************************************** ***************

Thanks Brett ! :) I appreciate your input.

Continue on this subject.

I haven't talked to my attorney for sometime, this time of year is very
busy for him: bankruptcy cases, taxes etc.

Anyway on my manufactured home loan, I didn't reaffirm the loan but
still make payments on time always have and as it looks like in the
future. My ch. 7 was discharged last July and each statement I receive
in fine print there is a notice that if a payment is late they reserve
the right to take the property. So if I just wanted to walk away from
this property they have no legal grounds to come after me for any future
payments. This is in Pennsylvania.
I know I spoke to my attorney about this but just wanted to see if this
maybe right.

So in either case if they take the property or I walk away how is this
reported to the credit bureaus if it is at all knowing it was listed in
the discharge.

Thanks

Rip