BULLETIN SMALL BUSINESS REORGANIZATION ACT POSTSCRIPT CARES Act Passed by Senate Increases Eligibility to Small Business Debtors with Aggregate Debts Up to $7,500,000 And Other Changes Early last Thursday morning, the Senate passed a substitute for H.R. 748, called the “Coronavirus Aid, Relief, and Economic Security Act” (the “CARES Act”). The bill passed the House on Friday, and the President...
From the Editor – Discharge Injunction
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By The Honorable William Houston Brown (Retired)
Enforcement of reaffirmation agreement did not violate discharge injunction. Former Chapter 7 debtors did not show that mortgagee violated discharge injunction when it took actions to enforce the parties’ reaffirmation agreement, which restored terms of the mortgage contract except for lowering adjustable interest rate. Any disputes about the reaffirmation agreement were properly brought in state court, including the foreclosure action. An enforceable reaffirmation agreement is a new contract to be construed under applicable state law. In re Gavitt, 514 B.R. 243 (Bankr. S.D. Ohio 2014 . . .
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