317 Some courts have found that a statement that is not made by a particular type or size of print is not „clear and striking” and have refused to allow agreements. In re Noble, 182 B.R. 854 (Bankr. W.D. Wash. 1995), citing In re Wallace, 102 B.R. 54, 56 (Bankr. E.D.N.C 1989). Return to text Impact of statements on incentives in Chapter 13. By obtaining a new declaration, a creditor generally receives much better treatment than if the debtor had applied for Chapter 13. In most cases, in Chapter 13, an undersecured debt would be divided into secured and unsecured coins.
The secured creditor would only be entitled to full payment of the secured portion of the loan. On the unsecured portion, the creditor would only receive a proportional distribution with all other holders of unsecured claims. With regard to unsecured debt, a new declaration in Chapter 7 entitles an unsecured creditor to 100% repayment, much more than the creditor would have received in most cases in accordance with Chapter 13. A repeatability agreement is considered to be in default if Part E is not concluded. If a completed Part E is not filed within the waiting period (15 days), the agreement is concluded. The filing of stand-by agreements with the Tribunal would remain a fundamental condition. This establishes a public record of the terms of the agreement and allows the court or any other party to see if the necessary information has been made to the debtor. Although it is not necessary to conduct hearings in all cases where the debtors` lawyers have signed the necessary sworn insurances, the judicial authorization of these confirmations would be restored to ensure that the requirements have been met.
In any case, the courts could organize hearings as they wished, as some courts are doing today. (a) filing of the confirmation agreement. A stand-by agreement must be submitted to the meeting of creditors no later than 60 days after the first date fixed in accordance with Article 341(a) of the Code. The affirmation agreement must be accompanied by coverage established in accordance with the corresponding official form. The Tribunal may, at any time and at its discretion, extend the time limit for filing a confirmation agreement. It is not surprising that the new confirmations have been at the centre of the Commission`s hearings and debates on consumer bankruptcies. From the earliest days to the last days, the Commission`s registration is filled with written and oral testimony on whether affirmation agreements undermine or facilitate the consumer insolvency system. While views on the usefulness of affirmation agreements may differ, most recognize that affirmations are far more creditor. Creditors, debtors` representatives, trustees, scientists and judges told the Commission that many creditors seek re-infringement agreements as a routine part of their participation in bankruptcies. (296) According to some creditors who wrote and testified, such as.B. Individual credit unions, a confirming arrangement is a collection instrument that allows them to continue doing business with debtors and is beneficial to debtors;(297) If debtors do not confirm their debts from the credit union, many credit unions have taken steps to prevent non-professional debtors from their affiliation. .