Podcast
Questions and Answers
What happens if the court refuses to approve a reaffirmation agreement under § 521 and 362(h)?
What happens if the court refuses to approve a reaffirmation agreement under § 521 and 362(h)?
- The debtor must immediately surrender the asset to the creditor.
- The debtor can sue the creditor for deficiency after bankruptcy.
- The debtor is still liable for deficiency regardless of court approval.
- The debtor can 'ride through' the bankruptcy without liability for deficiency. (correct)
In the case of In re Moustafi, why did the court find it would not be in the debtor’s best interest to reaffirm the car loan?
In the case of In re Moustafi, why did the court find it would not be in the debtor’s best interest to reaffirm the car loan?
- The debtor's income would not cover the car payments.
- The creditor did not agree to the reaffirmation agreement.
- The car was not in a good condition for reaffirmation.
- Reaffirming the loan would result in a negative income for the debtor. (correct)
What action did Vantage credit union threaten to take if the reaffirmation agreement was not approved?
What action did Vantage credit union threaten to take if the reaffirmation agreement was not approved?
- Repossess the car. (correct)
- File a lawsuit against the debtor.
- Offer a loan modification for the debtor.
- Lower the interest rate on the car loan.
When did the courts rule that the 'ride through' option was no longer available?
When did the courts rule that the 'ride through' option was no longer available?
What happens if the debtor has timely complied with all requirements under § 521 and 362(h)?
What happens if the debtor has timely complied with all requirements under § 521 and 362(h)?
What did the court find regarding the debtor's best interest in the case of In re Moustafi?
What did the court find regarding the debtor's best interest in the case of In re Moustafi?
What is the best way to avoid liability for deficiency when the court doesn’t approve the reaffirmation agreement?
What is the best way to avoid liability for deficiency when the court doesn’t approve the reaffirmation agreement?
What did Vantage credit union threaten to do when the reaffirmation agreement was not approved?
What did Vantage credit union threaten to do when the reaffirmation agreement was not approved?
