This paper discusses “ride through” and the effect of section 521 of the Bankruptcy Code on individual bankruptcies.
Under pre-BAPCPA case law, some jurisdictions provided debtors the option of “ride through” which allowed a debtor to retain the collateral and continue to pay the debt as if a bankruptcy had never taken place, without a written reaffirmation agreement. However, the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”) rendered “ride through” inapplicable in bankruptcy. A Chapter 7 debtor may now no longer retain collateral without either redeeming the property or reaffirming the debt. Also discussed is the potential liability of debtor’s counsel under an affidavit on a reaffirmation agreement when the debtor defaults.
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