Can a credit charge attorney fees on an auto loan that was part of the bankruptcy but was reaffirmed and there was no late payment? 10 Answers as of March 25, 2014

I had filed a chapter 7 and included my car which was financed through my credit union. Now my credit union is charging me attorney fees without going through the bankruptcy court. My payments were never late or my car repossessed.


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GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
I have never seen a creditor add in attorney fees to a reaffirmation agreement (for example, for that attorney preparing the reaffirmation agreement). I am not 100% certain there is anything wrong with the creditor doing that. If the value of the car is LESS than the amount owed to the creditor, ask your attorney to explain a 722 Redemption to you (if you Google these words, you will get a lot of information about 722 redemptions). This could save you thousands of dollars!!
Answer Applies to: Colorado
Replied: 3/25/2014
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Those fees need to be approved, see a competent lawyer.
Answer Applies to: California
Replied: 3/21/2014
Patrick W. Currin, Attorney at Law | Patrick Currin
No. There is no call for attorneys' fees and they must bear them.
Answer Applies to: California
Replied: 3/21/2014
Law Offices of Daniel J Winter
Law Offices of Daniel J Winter | Daniel J Winter
Yes they can; it's part of your car finance contract. They have to have attorneys prepare the reaffirmation agreement. It doesn't matter whether you are current or not on the car.
Answer Applies to: Illinois
Replied: 3/21/2014
Ronald K. Nims LLC | Ronald K. Nims
A reaffirmation agreement is a contract between you and the lender. If you agreed to pay an attorney's fee in the reaffirmation, then you have to pay it. If there is no fee mentioned in the reaffirmation agreement, then you don't have to pay it.
Answer Applies to: Ohio
Replied: 3/20/2014
    Law Offices of Linda Rose Fessler | Linda Fessler
    They cannot do that.
    Answer Applies to: California
    Replied: 3/20/2014
    Law Office of Shawn N. Wright | Shawn N. Wright
    No, this is not proper. Your credit union should have filed a notice with the Bankruptcy Court indicating that there were attorneys fees associated with the reaffirmation agreement.
    Answer Applies to: Pennsylvania
    Replied: 3/20/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    If you signed. Reaffirmation agreement then they did actually go through the court. You have to look to the terms if your original loan to see what fees and costs the credit union is permitted to charge you for.
    Answer Applies to: Colorado
    Replied: 3/20/2014
    Detroit Lawyers, PLLC
    Detroit Lawyers, PLLC | Nick Best
    No. If you reaffirmed your vehicle in a Chapter 7 proceeding, the creditor cannot charge you for the services of drafting and providing the reaffirmation agreement. I would contact the credit union to advise them of this and threaten to file a Motion for Sanctions in Violation of the Automatic Stay.
    Answer Applies to: Michigan
    Replied: 3/20/2014
    Thomas Vogele & Associates, APC | Thomas A. Vogele
    If you are still in bankruptcy, the credit union cannot take any action to enforce perfect or modify a debt once you file bankruptcy. The terms of your car loan will dictate whether it can add legal fees to your debt. Check with your bankruptcy attorney.
    Answer Applies to: California
    Replied: 3/20/2014
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