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16

Jul 2019

Reaffirmation: It’s like an episode of Law and Order.

Posted by / in Chapter 7, Weekly Posts /

“What was that? Law and Order?”

Today I was at the bankruptcy court asking the Judge to approve two credit card reaffirmations. One for a little more than $500; one for a little less.

Both because my clients had a good relationship going back years with their credit union. So they wanted to keep them.  (Reaffirmations require approval by the judge; and the judge is supposed to go easier on credit union reaffirmations. See 11 USC §524(m)(2))

Since the judge is supposed to go easy on credit unions, I thought we had a good chance of getting them both approved.

The Judge approved the one for less than $500; but she turned the other one down.

Bankruptcy Judge will turn down your reaffirmation

If the bankruptcy Judge thinks there’s any question about your ability to pay, she will turn down your reaffirmation.

“What was that?” said the wife of the consumer whose reaffirmation was approved. “Was that like, Law and Order?”

Our Judge does NOT like reaffirmations. So, if you want your reaffirmation approved here, the judge will go line by line through your budget. “What’s this dental insurance?” “How much is your car payment?”

The consumer whose reaffirmation was turned down is divorced, and said she often doesn’t get her support paid on time. That was enough to get her turned down.

The one that was approved was a married couple, both with steady work, and no kids.

If the judge thinks there’s any question at all that you can’t afford to pay–even on a bill that’s only $17.00 a month–she’ll turn it down.

In a simple Chapter 7 case here in Alexandria Virginia, your bankruptcy is approved in a three minute trustee hearing.

Getting a reaffirmation approved is seven minutes of tough cross examination by the Judge.

 

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30

Apr 2013

Getting Sued After a Short Sale?

Posted by / in Before Bankruptcy, Chapter 7, The 2005 Bankruptcy Law / No comments yet

Getting Sued After Short Sale?

Getting sued after a short sale is highly probable.  Saw three couples this month who needed to file bankruptcy, because they were getting sued–garnished in one case–by the second mortgage after a short sale.

It was surprising that they were surprised.   At the peak of the crisis, four or five years ago, second mortgages would take what they could get at a short sale and let the rest of it go.  But they don’t often do that anymore.  (At least not without intense negotiation.  I’ve seen it once in the last year.)

And usually they make you sign that you KNOW that you still owe the money.  So, where’s the surprise?

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NORTHERN VIRGINIA BANKRUPTCY LAW OFFICES