297 See letter from Ron Haas, Chairman, Alabama Credit Union League (July 7, 1997); Letter from Derek Smith, Loan Department, First Community Credit Union, Ellisville, MO (August 8, 1997); Letter from Joe Irish, Collections Officer, Fergus County Federal Credit Union, Lewistown, Montana (July 16, 1997); Letter from Andrena MacLeod-Rock, Manager, United Credit Union, Council Bluffs, AI to The Bank Bankruptcy Review Commission (May 6, 1997) (confirmation ban is not in the best interest of consumers, because confirmation shows good intent to repay debt that helps secure future loans). Back to the Text The current confirmation requirements expressly require a solicitor-in-one statement that the proposed confirmations do not cause unreasonable severity to their clients. Recent practices suggest that some lawyers sign these assurances under oath with little or no attention to this requirement. Honorary President John Akard of Texas wrote to the Commission in the final days of the preparation of this report to present a confirmation agreement signed by debtors in court. The agreement required them to repay a loan on a pick-up truck that cost 18,027.71 $US over 15 years. In the event of an interest rate, debtors would pay a total of $42,861.84. Akard J. asked counsel for the debtor on the length of the payment, at that time “lawyer admitted to neglecting this fact.” The main reason for not signing a confirmation agreement is that it guarantees that you will not be able to move away from the debt in the future. If your Chapter 7 continues to be successfully discharged, you are prohibited from submitting another Chapter 7 case for 8 years.
If you are lagging behind at any time and the creditor recovers the property, you will no longer have it and you will continue to be responsible for the difference between the amount of the contract and the value of the item. 1.3.2 An additional subsection should be added to Section 524 for the court to rule in favour of a person who has received a section 727 discharge; 1141, 1228 or 1328 of this title for legal fees and fees, plus three damages, by a creditor who threatens, sues or otherwise attempts to become debt-free, which have been dismissed in bankruptcy and have not been the subject of an agreement under subsections (c) and d). Section 524. Although personal liability is exempt in the event of bankruptcy, a secured creditor reserves the right to take claims on his or her security, unless the bankruptcy law provides for the right to pledge. (365) If a debtor is late in the loan contract before bankruptcy, the right of repayment of the creditor is clear. If the debtor remains aware prior to the declaration of insolvency and wishes to remain informed, it is not certain that a debtor has the right to retain the property and continue to pay despite the interim bankruptcy proceedings. In the search for a solution, many courts have looked at section 521, paragraph 2, which was included in the code in 1984 and requires debtors to indicate their guarantee intentions.