The assertion of a debt that is not secured by substantial ownership raises important questions as to whether such an agreement may be in the best interests of the debtor. (324) When the original version of paragraph 524 (c) was drafted, few expected this provision to be used for the frequent reaffirmation of unsecured claims. Theories as to why debtors agree to confirm unsecured debt diverge. Some might confirm because the debt is co-signed and they want to protect the co-signer. (325) Others may assert certain debts out of moral obligation. These debtors could repay voluntarily without creating an agreement that could be sued. 329 See ex. B Royce E. Wallace, Wichita, KS (April 16, 1996) (Confirmations of secured debt may be useful to debtors); Letter from Eric Taylor`s office, St. Louis, MO (June 20, 1997) (Confirmation of secured debt may be beneficial to debtors if debtors have previously failed to pay). Back to the text Indeed, the signing of a confirmation agreement brings you back to the incense of the debt. 394 See Fogie v.
Thorn Americas, Inc., 95 F.3d 645 (8th Cir.) (in the case of a certified compliant class action, in which, by maintaining an injunction against the rental of abrupt contracts, which actually calculated 48-746%, it contravenes state law), reh`g in banc denied (1996), cert. denied, 117 S.C. 1427 (1997); Ortiz v. Rental Management, Inc. 65 F.3d 335 (3d Cir. 1995) (non-credit lease for truth purposes in the loan law, because the tenant could at any time terminate). See Wade Lambert, Thorn Must Void Rental Contracts, A Judge Decides, Wall St. J., October 2, 1995, by B6. Back to the text Many creditors ask for and obtain confirmations for unsecured debts. According to the Creighton Bankruptcy Reaffirmation Project, 22% of the confirmation contracts in their sample were for totally unsecured consumer debt (323), while more than half of the confirmations submitted were for unsecured, nominally guaranteed or under-guaranteed debts. (322) Anecdotal evidence and testimony from a large number of parties to the Board generally support this conclusion. In these cases, debtors confirm their personal debt obligations, but do not retain assets.
320 VISA CONSUMER CONSUMERY REPORTS, CONSUMER BANKRUPTCY: BANKRUPTCY DEBTOR SURVEY 12 (July 1996). Professors Culhane and White report that 28.1% of debtors had one or more confirmations in their files. Marianne Culhane and Michaela White, Memorandum to National Bankruptcy Review Commission, Creighton Bankruptcy Reaffirmation Project Preliminary Results, Table 19 (September 23, 1997). Back to the textual effect of these recommendations on credit unions. Many groups of creditors have expressed concern about a more restrictive re-inclusion policy, including a group of creditors that stands out in its approach to consumer credit: non-profit credit unions.