This calls into question the applicability of “ipso facto” bankruptcy clauses contained in many consumer contracts. “Ipso facto” comes from the Latin expression meaning “by the fact itself” and means that filing a bankruptcy proceeding causes a default in the agreement that authorizes the other party to terminate the contract and begin the exercise of the appeals. The concept of a confirmation agreement is not defined in the bankruptcy law. However, the term is used in section 4008 of the federal bankruptcy proceedings. See the Fed. A. BANKR. 4008. The Seventh Circuit explains the effect of such an agreement as follows: As explained below, a debtor should think very carefully before confirming a debt. Some confirmation agreements require court approval to be effective.
The confirmation agreement and coverage must be filed in court. Unfortunately, after the debt reaffirmation, you realize that you cannot afford to continue making your mortgages. And now? I hope you didn`t take too long to discover that you can`t afford to keep your home. BankruptcyCode gives you the ability to change your mind about confirming secure real estate, but you need to act quickly. 11 U.S.C 524 states that you may revoke the confirmation agreement “at any time prior to dismissal or within 60 days of filing such an agreement in court, depending on what happens later.” All you need to do is file the termination of the court and serve the guaranteed lender. No hearing or appearance is required. Revocation of a confirmation agreement is a very simple process and usually costs the debtor nothing. However, if the confirmation agreement was filed shortly before the discharge, the bankruptcy proceedings may be closed before the 60-day period for the revocation of a confirmation contract has expired.
If this happens, you will have to reopen the bankruptcy case, which will cost you $235.00 for court filing fees. (a) the submission of a confirmation agreement. A confirmation agreement is presented no later than 60 days after the first date of the creditors` meeting under Section 341, point a) of the code. The confirmation agreement is accompanied by a cover sheet drawn up in accordance with the corresponding official form. The court may, at any time and at its sole discretion, extend the time required to present a confirmation agreement. A Chapter 7 debtor may revoke or revoke a confirmation agreement by resigning within 60 days of the date on which he signed the agreement or on a date before the court discharges the case.