[CLBS] Reaffirmation and reopening a bankruptcy case

[Tyler McGee]

Debtors filed a Ch. 7 several months ago, despite my advice they stated their intent to reaffirm a vehicle loan in which they were upside down equity wise. Bank of America didn't send a reaffirmation right away, at the debtors request I sent them a letter requesting a reaffirmation agreement, they still never sent one. The bankruptcy closed and now the debtors really want to reaffirm so that it is reported on their credit. (I've already talked to them about getting rid of the car because its upside down, they don't like that option.) The Bank is now telling them that they have to reopen the bankruptcy in order to reaffirm. My question is...with the disfavor the court generally has with reaffirmation agreements and the timing deadlines, is a judge going to allow the debtors to reopen the case just so they can get a reaffirmation? Has anyone dealt with this?

Tyler J. McGee

ROY, NIELSON, BARINI-GARCIA & PLATTS
P.O. Box 487
Twin Falls, Idaho 83303-0487
Phone: (208) 734-4450
Fax:  (208) 734-4452