Reaffirmation Agreements

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.

MR. BANKR. Inst. L. REV. 115 (1994) (populated in most countries that lease-to-own-agreement is not a rate sale or an interest in security); see z.B. Powers v. Royce, 983 F.2d 88 (7. Cir. 1993) (under Illinois law, the own rent transaction is a real lease under Illinois law); In re Yarbrough, 211 B.R.

654 (Bankr. W.D. Tenn. 1997) (self-driving transaction is the real rent according to tennes law); Mr.C`s Rent-to-Own v. Jarrells, 205 B.R. 994 (Bankr.M.D. Ga. 1997) (self-transfer rental for air conditioning was the real rent); In re Rigg, 198 B.R. 681 (Bankr. N.D. Tex.

1996) (account lease was a real lease under Texas law); In re Morris, 150 B.R. 446 (Bankr. E.D. Mo.1992). Still others find it neither a lease nor an interest in security. In re Trusty, 189 B.R. 977 (Bankr. N.D. Ala. 1995) (according to Alabama`s own lease status, the own lease is neither a warranty nor a lease, but a hybrid commercial agreement that should be considered a performance contract). Section 1-201 (37) of the Alabama Commercial Code was adopted in 1991, so that leases are expressly excluded from the definition of “security interests.” Return to text (a) Presentation of the confirmation agreement. A confirmation agreement is presented no later than 60 days after the first date of the creditors` meeting under Section 341, point a) of the code.

The confirmation agreement is accompanied by a cover sheet drawn up in accordance with the corresponding official form. The court may, at any time and at its sole discretion, extend the time required to present a confirmation agreement. Like some States that implement purchase agreements in limited circumstances (388), the Commission recommends that a creditor who wishes to retain an interest in the security of money to purchase domestic property and take action to ask the court to do so. A secured creditor who intends to pursue a security interest after decoming a debtor under Chapter 7 should identify the claimed object as collateral and provide evidence that the individual element is worth more than $500, so that it remains subject to the interest of security.

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