11 Usc Reaffirmation Agreement
A judge found that the discovery of Sears` practices was only a „tiny tip of a very large iceberg.“ (355) Already May Department Stores, Co. (Filene`s and Lord and Taylor), (356) GE Capital Services (map edition for Montgomery Ward and Lechmere), (357) Federated Stores Department (Bloomingdales and Macy`s), (358) and AT-T Universal face similar charges. After reviewing its own practices, Federated acknowledged that nearly 18% of the confirmation portfolio had been inappropriate since 1990. Ge Capital also acknowledged „in court documents that it may, in some cases, have failed to inform bankruptcy judges that the agreements were in place.“ (359) Ford and Chrysler`s financial statements are also subject to a review of the same practices. (360) Attorneys general in a number of states are investigating dozens of lenders for debt collection by these measures, in express violation of the bankruptcy law procedure. 378 See In re Hardage, 99 B.R. 738 (Bankr. N.D. Tex. 1989) (safety agreement established in the consumer goods sales bulletin where notes indicated that Sears retained a safety interest); In re Ziluck, 139 B.R. 44 (S.D. Fla.
1992) (credit card application and language agreement to grant security interests, establishes a security agreement; „all invoiced products,“ a sufficient description of warranties; In re Hance, 181 B.R. 184 (Bankr.M.D. Dad. 1993) (the sales voucher, which grants security interests on purchased products, was a safety agreement); In re Anderson, 23 B.R. 130 (Bankr. D. Neb. 1982) (safety interest for consumer products retained by the retailer through a renewable royalty agreement and sales vouchers); In re Martinez, 179 B.R. 90 (Bankr. N.D. II.
1994) (security contract in force for consumer electronics, where the debtor signed a credit contract containing a clause stating that „all invoiced goods“ were guarantees). Back to the text A debtor might want to become more indebted when these debts would be relieved in the event of bankruptcy. For example, a debtor may keep a vehicle. As a promise to repay these debts, a debtor must enter into a confirmation agreement with the creditor. Statements are optional and are not prescribed by law. It is recommended that the debtor carefully determine whether or not agreed payments can be made before a confirmation agreement is reached. If a debtor is not in debt and chooses not to sign a confirmation agreement, many lenders will recognize the ability to keep and pay the debts by continuing the regular monthly payments. However, this option is not recognized by all lenders, so it is important to know the lender`s position on the debt statement in relation to the retention and compensation option. „That is why I am asking the court to approve this confirmation agreement.“ „I herein confirm that (1) this agreement constitutes a fully informed and voluntary agreement of the debtor; 2. This agreement does not place undue severity on the debtor or debtor dependent on the debtor; and (3) I have fully informed the debtor of the legal value and consequences of this agreement and of any default in this agreement. (d) In a case involving an individual, the court, in deciding whether it has discharged under sections 727, 1141, 1228 or 1328 of this title, may hold a hearing at which the debtor appears in person.