[CNYBBA-LISTSERV] Reaffirmations.

[Ruth Babbitt]

Father need not sign reaffirmation agreement because son's discharge will
not affect father's obligation. Section 524(e). I assume your concerns here
are founded on Sections 521(a)(2)/362(h)(1) and Section 521(a)(6), which
when read together with Section 521(d) give life to insolvency/bankruptcy
ipso facto clauses and effectively eliminate the so-called "fourth"
(Boodrow) option on obligations secured by personal property. However, if
the debtor reaffirms within the time (30 days?/45 days?) so limited, those
provisions are defused.

Query. Suppose son is willing to reaffirm for the full car loan amount, but
refuses to sign the reaffirmation prepared by lender's counsel because it
adds lender's counsel's attorney's fees to the loan amount. Is son protected
by Section 362(h)(1)(B) provision that reads: "unless such statement [of
intention] specifies the debtor's intention to reaffirm such debt on the
original contract terms and the creditor refuses to agree to the
reaffirmation on such terms." ? In other words, is the creditor's request
for attorney's fees something beyond the original contract terms - even if
the contract contains an attorney's fees clause in lender's favor?

-Ed Crossmore


Ruth Babbitt
Secretary to Edward Y. Crossmore, Esq.
The Crossmore Law Office
115 West Green Street
Ithaca, New York  14850
Tel.:  (607) 273-5787
Fax:  (607) 273-0291

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  -----Original Message-----
  From: cnybba-bounces at cnybba.org [mailto:cnybba-bounces at cnybba.org]On
Behalf Of TampaStomp at aol.com
  Sent: Wednesday, June 07, 2006 4:43 PM
  To: cnybba at cnybba.org
  Subject: [CNYBBA-LISTSERV] Reaffirmations.


  Question:

      Father and son are on title to car and are co-obligors.  Father files
Chapter 7 Bankruptcy.  Does father need to sign reaffirmation agreement?
Son is in possession of car and is making the payments.  If father does not
sign reaffirmation agreement, may lender repossess the car from the son?

      Your thoughts are appreciated.

  Russell
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