IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
In Re: *XXXXXXXX
* Case No. 11-XXXXXXX
* Chapter 7
*
*
Debtor(s) *
ORDER DECLINING APPROVAL OF REAFFIRMATION AGREEMENT
This bankruptcy case under Chapter 7 came before the court for approval of the
Debtor's proposed Reaffirmation Agreement with Mariner Finance, LLC. The court
held a hearing on June 16, 2011. As a result of the matters developed at the hearing
and from the Schedules, the court finds as a fact that the presumption of 11 U.S.C. §
524(m) that this debt is an undue hardship has not been rebutted to the satisfaction of
this court. However, as in the case of In re Chim, 381 B.R. 191 (BC MD 2008), the
Debtor has performed his duty under 11 U.S.C. § 521(a)(6) in that he timely filed a
Statement of Intention and timely entered into the Reaffirmation Agreement. The
Debtor is not required to surrender the 2004 Hyundai Elantra and 1998 Ford F150 to
the Creditor, and as pointed out in In re Chim and In re Belanger, 962 F.2d 345, 348
(CA4 1992), the default-on-filing clause in the installment loan contract is
unenforceable as a matter of law.
The court declines to approve the Reaffirmation Agreement. The provisions of
11 U.S.C. §§ 362(h), 521(a)(6) and 521(d) are inapplicable to this case. The vehicles
remain property of the estate, the automatic stay remains in place with respect to the
vehicles until such time as the stay terminates under 11 U.S.C. § 362(c) or (d), the
Debtor is not obligated to turn over possession of the vehicles to the Lender, and the
Lender may not exercise remedies as a result of default and any ipso facto clause
contained in the loan agreement.
IT IS SO ORDERED.
cc: Debtor
Debtor's Counsel
Chapter 7 Trustee
Creditor
End of Order
FOR THE DISTRICT OF MARYLAND
at Greenbelt
In Re: *XXXXXXXX
* Case No. 11-XXXXXXX
* Chapter 7
*
*
Debtor(s) *
ORDER DECLINING APPROVAL OF REAFFIRMATION AGREEMENT
This bankruptcy case under Chapter 7 came before the court for approval of the
Debtor's proposed Reaffirmation Agreement with Mariner Finance, LLC. The court
held a hearing on June 16, 2011. As a result of the matters developed at the hearing
and from the Schedules, the court finds as a fact that the presumption of 11 U.S.C. §
524(m) that this debt is an undue hardship has not been rebutted to the satisfaction of
this court. However, as in the case of In re Chim, 381 B.R. 191 (BC MD 2008), the
Debtor has performed his duty under 11 U.S.C. § 521(a)(6) in that he timely filed a
Statement of Intention and timely entered into the Reaffirmation Agreement. The
Debtor is not required to surrender the 2004 Hyundai Elantra and 1998 Ford F150 to
the Creditor, and as pointed out in In re Chim and In re Belanger, 962 F.2d 345, 348
(CA4 1992), the default-on-filing clause in the installment loan contract is
unenforceable as a matter of law.
The court declines to approve the Reaffirmation Agreement. The provisions of
11 U.S.C. §§ 362(h), 521(a)(6) and 521(d) are inapplicable to this case. The vehicles
remain property of the estate, the automatic stay remains in place with respect to the
vehicles until such time as the stay terminates under 11 U.S.C. § 362(c) or (d), the
Debtor is not obligated to turn over possession of the vehicles to the Lender, and the
Lender may not exercise remedies as a result of default and any ipso facto clause
contained in the loan agreement.
IT IS SO ORDERED.
cc: Debtor
Debtor's Counsel
Chapter 7 Trustee
Creditor
End of Order