Often times creditors will send debtors a reaffirmation agreement in an attempt to assume a lease of personal property. This most commonly happens with vehicle and furniture leases. Not being the wiser, debtors’ counsel has their clients sign these reaffirmation agreements not knowing that they are null and void to effectuate a lease assumption. Under Title of 11 of the United States Code (“Bankruptcy Code”), there are two different and independent processes for reaffirming debts and assuming leases. “Section 524(c) of the Bankruptcy Code allows a debtor to voluntarily “reaffirm” their personal liability for a debt, and such debts are not discharged. Section 365(p) permits the assumption of a personal property lease by individual debtors in Chapter 7 cases. ” In re Kearns, Case No. 20-20252-BPH, (Bankr. D. Mont. Feb. 12, 2021).
