A Reaffirmation Agreement Is Required By The Court Once You File A Bankruptcy
Updated claims. Through all these legal permutations, the experience of the assertions of the 1978 code has shown that the existing procedural constraints have not achieved the desired objectives. In 1978, few policy makers were able to think about unsecured debt being routinely confirmed, but the data indicate that this is happening. Although credit cards are not readily available to debtors who have gone bankrupt, it may be unwise to allow confirmations only to allow bankrupt debtors more access to credit after bankruptcy, which has often exacerbated the debtors` initial financial difficulties. (342) Bankruptcy proceedings should encourage debtors to focus more on savings and spending within their own resources. 381 Statement by David H. Williams, Attorney, Division of Special Projects, Bureau of Consumer Protection, Federal Trade Commission, Subcommittee on Civil and Constitutional Rights of the House Committee on the Judiciary, 94 Cong, 1st – 2d Sess. at 758-63 (1975-76) (supporting nonwaivability of federal exemptions and prohibition on reaffirm). Between 1972 and 1974, the Federal Trade Commission visited 130 branches of 12 major consumer finance companies in 30 countries and copied and audited 6,000 consumer accounts. Back to the text The proposal is not based on a subjective determination of the usefulness of leases.
Leasing contracts have been attacked outside of bankruptcy, with different results. (394) Consumer advocates argue that these leases are an attempt to avoid the various government laws governing interest rates and lending practices. (395) The question of whether consumer protection legislation should prohibit such contracts is beyond the scope of the Commission`s work. But what is necessary in the event of bankruptcy is a characterization of these transactions to determine priority and rights. The courts do not agree on the appropriate treatment of leases. Some courts characterize leases as temperamental sales that create eligible guaranteed rights, while others treat contracts as leases that must be executed or violated in full. (396) Here too, the parties are treated differently on the same site than the parties with the same contracts elsewhere. More consistent guidelines on the role of these transactions in the bankruptcy priority system are needed to prevent wasted litigation and ensure the application of a uniform legal standard. This is a dispute over a bankruptcy issue that must be dealt with uniformly in bankruptcy courts, which differ from the province of state legislators in regulating such agreements for other purposes. 396 According to the American Bankruptcy Institute`s Consumer Bankruptcy Reform Forum Report, a majority of courts treat these agreements as guaranteed tempe/loan sales contracts. See for example.
B South Carolina Rentals, Inc. v. Arthur, 187 B.R. 502 (D.S.C 1995) (equipment leases concluded); In re Goin, 141 B.R. 730 (Bankr. D. Idaho 1992) (rent-to-account for the freezer and VCR was a security agreement according to the Idaho Common Law). But seeing Barkley Clark et.al. Rent-to-Own Agreements in Bankruptcy: Sales or Leases, 2 AM.