Last Friday at about 11am, we got a phone call from a customer in Spokane named Brandy who had filed Chapter 7 Bankruptcy about three months before calling us. It usually takes about 90-days for a bankruptcy to discharge after the filing date, so we knew we were getting close to the bankruptcy discharge.
After going through our normal investigative questions, we had learned that Brandy had reaffirmed a car in her bankruptcy, but did not make the required payments of the reaffirmation, so the vehicle had just been repossessed.
Reaffirming a vehicle after bankruptcy means that the customer accepts legal responsibility for the loan after the bankruptcy and if you don’t pay, the lender can pursue you for losses…JUST LIKE THE BANKRUPTCY NEVER HAPPENED.
We instructed Brandy to call her attorney IMMEDIATELY and rescind the reaffirmation agreement that she had signed on the old vehicle. Our fear was that Brandy’s attorney was not in the office, because many attorneys take Fridays off. Brandy hung up the phone with us, called her attorney. Luckily, her attorney was at work on this Friday and was able to submit the recission minutes before the trustee’s office closed. Brandy was able to include the old vehicle in her bankruptcy.
Less than an hour later, her bankruptcy discharged.
If she had not been able to get the recission submitted before the discharge, or if her attorney had not been in the office until Monday, or if she had waited until Saturday to call Washington Auto Credit, Brandy would have been responsible for the vehicle loan that had ALREADY BEEN REPOSSESSED. Since she called Washington Auto Credit at the last possible minute, Brandy has no legal responsibility for the old loan, and she now has a new loan and a new, more reliable, vehicle to help her rebuild her credit.
One life changed.