Chapter 7 bankruptcy. If I refuse to sign reaffirmation with company who installed HVAC system. What will they do?

Asked over 1 year ago - Los Angeles, CA

I am in a Chapter 7. They sent me a reaffirmation for work done at my house. I'm just wondering if I effectively have to sign this thing. What can they do if I don't?

Attorney answers (4)

  1. Dorothy G Bunce

    Pro

    Contributor Level 20

    7

    Lawyers agree

    Answered . A reaffirmation agreement is a separate promise to pay a debt. If the lender's lien on the property is good, the lender can repo the property if you don't pay. As long as you continue to pay, there is no reason to repo, even without a reaffirmation agreement. Hope this perspective helps!

  2. Brian Crozier Whitaker

    Contributor Level 17

    4

    Lawyers agree

    Answered . The cost of recovering an installed HVAC system would likely exceed whatever they might be able to sell it for. They could, however, object to your discharge of that particular debt if they feel they can prove that you knew you were going to file BK when it was installed.

  3. Diane L Gruber

    Pro

    Contributor Level 18

    4

    Lawyers agree

    Answered . Don't sign it, BUT keep making the payments. They are HIGHLY unlikely to foreclose on this lien. Good luck.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662.... more
  4. William Asa Grafton

    Contributor Level 12

    3

    Lawyers agree

    Answered . This is a very state-law specific question. Here are the major issues:

    Is the HVAC now considered a fixture? Do they have a valid lien? What are their remedies?

    The advice of the other attorneys is good, for what it's worth. I would not reaffirm the debt, but until you are certain that there can be no ramifications to not paying, I would continue to pay the monthly note.

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