Pay Attention To Documents You Receive From Bankruptcy Court

Read documents sent to you by the bankruptcy court and don’t rely solely on your bankruptcy attorney to call you if the document is important. Its your bankruptcy, not your attorney’s bankruptcy. Here’s an example. A bankruptcy client whose case is closed called me to complain that a car lender is pursuing his co-debtor wife after the lender repossessed the car. The client says he mailed all the payments to the lender but they refused to accept them. He says that my secretary told him if he kept the payments current the lender would not hold his wife liable, and now he wants my office to fix the problem. Its true that maintaining the car payments would protect his wife, but the debtor failed to recall advice given about the necessity of also signing a reaffirmation agreement.

A signed reaffirmation was sent to the creditor, but the court scheduled a hearing to confirm the reaffirmation agreement. The debtor was sent notice of the hearing. The debtor did not attend the hearing. The court denied the reaffirmation agreement based on the debtor’s non-attendance. Without reaffirmation, the car creditor decided to repossess the car and pursue the jointly liable spouse. The debtor says he did not go to the hearing because he didn’t think it was important and nobody told him to attend. He did not call the office to discuss the hearing. As a result, his wife is liable for a large car debt.

Car reaffirmation and many other aspects of bankruptcy are more complicated under the new bankruptcy law. Your bankruptcy is a partnership between you and your attorney. Each of you has a role to play. Ultimately, you are responsible for the consequences of following directions from your attorney, providing accurate information, and responding to court documents. The more effort and involvement you put into your bankruptcy the greater your chances of a successful outcome. Pay close attention to any written notices you receive from the court and call your attorney if you have any doubts about what the notice means for your case.

posted by Jonathan Alper, bankruptcy and asset protection attorney, Orlando, Florida