On February 22, 2012, the Court issued the In re: Bowden decision. The Bowden decision will affect the way attorneys and their clients approach reaffirmation agreements in the Eastern District of North Carolina (EDNC). First, a little background. What is a “reaffirmation agreement?” A reaffirmation agreement is a contract between a debtor and a creditor. [...]
Reaffirmation
Bankruptcy debtors should not reaffirm a mortgage. Reaffirmation of debt in bankruptcy prevents the debt from being discharged, a process explained in greater detail by Kevin Gipson in Chapter 7 Bankruptcy and the Reaffirmation Agreement. Yet, lawyers continue to debate whether to reaffirm a mortgage, without compelling argument on the affirmative side, even though state [...]
If you have been reading Bankruptcy Law Network recently, you would have seen various articles about reaffirmations. What they are, what they do, under what circumstances you should reaffirm a debt or mortgage and when you should not. There are even some courts that say you must reaffirm a car loan in [...]
