Unlike these creditors, other parties, who are less creditors in bankruptcies, may not consider it inexpensive to be in the courthouse to obtain confirmations. In addition, creditors who follow the most conservative and prudent post-bankruptcy credit practices may not be prepared to appease debtors who go bankrupt for new payments. As a result, the bankruptcy system as it is currently constituted rewards the largest and most aggressive creditors. For the rest, the promise of “justice is equality” in bankruptcy is a hollow promise. When a debtor signs a confirmation agreement, he agrees to commit a certain portion of his future income to pay an unsecured creditor, to the exclusion of any other. This goes against the principle of abrupt distribution to creditors, which is at the heart of the collective bankruptcy proceedings. The high volume of repayment obligations outside the structure of Chapter 13 of the payment plan reinforces the difference in treatment between similar creditors. 328 See letter from Deborah A. Kloberdans, Bath Maine (August 1, 1997); Letter from Henry J. Sommer, Miller, Frank-Miller, Philadelphia, PA (October 8, 1996) to the National Bankruptcy Review Commission (recommended to eliminate section 524 confirmation provisions); See also paula E. Langguth`s letter, Bounce Back from Bankruptcy, to Brady Williamson (July 2, 1997) Back to text The venture bank`s problems stem from the fact that it did not receive a valid confirmation agreement during the borrower`s Chapter 7 case and received two separate amendments to the agreements signed by the borrower after receiving discharge. The chronology of events includes the following: Lapides had a venture loan secured by a 3rd position mortgage on Lapides` home.
The loan was proven by a certificate issued on June 30, 2009. On August 11, 2009, Lapides applied to the Minnesota District Bankruptcy Court for Chapter 7 insolvency protection. During the bankruptcy proceedings, Venture and Lapides discussed the refinancing of all Lapides` debts and the parties even drafted and signed an agreement for debt reaffirmation. However, Lapides bankruptcy attorney did not sign the confirmation agreement and was unable to seek bankruptcy court approval for the confirmation agreement. On November 16, 2009, Lapides received the discharge of personal debts. At that time, Venture still had a pawn on Lapides` residence, but Venture could not claim Lapides` personal debt recovery. The assertions are strictly voluntary. If you wish to (consent) to a particular debt, you must enter into a written agreement with the creditor that legally obliges you to pay a debt in full or in part (destroyed by bankruptcy).
The form is Form 240A of the confirmation agreement.