Thursday, November 29, 2012

Bankruptcy Law, The Law of Debtors and Creditors Problem Set Answers, Warren Westbrook Sixth Edition - Problem Set 13

 Problem set 13, p.277

  • The membership of the gym club is suspended
    • §524(a)(2) discharge of the debts means that Peter does not owe money to MM. If MM revoked his membership due to his debt, this is a violation of the injunction of the act to collect the debts.
    • Counterargument: we are just angry. We don’t intend to collect the previous debts.
    • Breaking point: What is the reason of the suspension? If Peter pays back two months payment, peter is allowed to return back. Then the club is in trouble.
    • What if this was before discharge? Do they have to let him keep coming? Seems like you would have to continue providing services
  1. Impulsive reaffirmation
    • First, under §524(c)(2), Kevin can assert that he did not receive the disclosure under §524(k), so the agreement is void.
    • Second, he was not represented by the lawyers in the negotiating the agreement, so the agreement has to meet §524(c)(3): filing with the court and court approves it if it does not impose an undue burden on the debtor and is in the best interest of the debtor.
    • Third, even if the agreement is enforceable and filed with the court, he can still rescind the agreement within 60 days.
  1. We gonna sign an undue hardship thing for Big Moon's redemption? He can redeem whatever he wants. Try to talk him out of it. Remember for §722 it has to be exempt. Can only redeem to the amount of the exemption cap? Looks like no cap for redemption… Why? The cap is that redemption cannot extend beyond the exemption; an implicit cap.
  2. Is the car exempt under §522? §522(d)(2)? It depends on the state law. If the state law has no opposite stipulation, it is exempted to $2,950. But can she keep the car or she can just get the exempted money? If it is fully exempted, she can keep the car; if partially exempt, she can only get the money
    • Receptive to the reaffirmation? How about the other two unsecured signature loans?
    • This is a bad deal for her. Don’t sign. If she could possible get redemption on the car, that's ok.
    •  Note: remember the Sears case. Is soliciting a reaffirmation a violation of the proscription on an act to collect. Is it all a matter of who starts the reaffirmation negotiation? It does matter who initiate the reaffirmation. If the creditor initiates the reaffirmation, it may violate the stay.
    • Note: After CH 7 personal discharge, the lien on secured debt still attaches to the property.
  1. Q.8 §525(b) no private may terminate the employment of an individual who was a debtor in the bankruptcy case.
Problem Sets: Table of Contents

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