[CLBS] Reaffirmation

[Susan R. Wilson]

Hi All,

I don't practice bankruptcy law, so I appreciate any thoughts and guidance from those who do. I have a client who is a creditor - he is a lender who has a deed of trust on real property of the debtor. My client was considering a reaffirmation agreement to allow the debtor to reassume the Note.  However, he has recently received information that the Debtor's budget shows expenses in excess of the income without even considering the expenses involved in reassuming the debt.  

Does a Trustee look at that budget and then potentially deny the reaffirmation agreement, even if my client the creditor agrees, because the budget doesn't have room for the reaffirmation?  If my client decides not to do the reaffirmation agreement - then does he just get the property back (like a deed in lieu of?) or wait until the bankruptcy is done to proceed with foreclosure?

Thanks for your wisdom!

Susan


Susan R. Wilson
Attorney at Law, PLLC
208 S. Main St. Ste 2
Moscow, ID 83843
sw2 at moscow.com
208-882-8060
866-221-9397 (fx)
 
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