Both the statute and the applicable case law make it clear that a confirmation agreement is not applicable if it is not concluded before the discharge is granted. 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. If the debt for the confirmed position is not to be determined, it is likely that a creditor will take over the position and report non-payment and withdrawal to credit reporting companies such as Equifax and Experian. It is precisely because the assertion of guilt is dangerous that the confirmation agreements must be approved by the U.S. federal court in charge of the case. The Court of Justice does not need to approve a confirmation agreement applicable to consumer debts guaranteed by real estate. This applies to all mortgages on your home or other debts that are guaranteed by your home. In addition, the Court does not approve confirmation agreements between debtors and credit unions. They are filed and are part of the minutes without being heard. You have the right to revoke (revoke) any confirmation at any time prior to receipt of your dismissal or within 60 days of filing the confirmation agreement with the court, depending on what happens later.
To revoke a confirmation agreement, you must send the creditor a written notice that you are withdrawing your decision to confirm and revoke the agreement. Send the original letter to the creditor and a copy to the administrator`s office to be part of your file. Conclusion of the Form form Confirmation Agreement All affirmations must be submitted with the official B27 form, the certification sheet. The confirmation agreement (official form B240A) was amended effective December 1, 2009. In order to allow sufficient time for applicants to implement the change of form, the Court of Justice will authorize a transitional period of six months during which the old (1/07) or the new version (12/09) of the confirmation agreement can be filed. Note: As of April 1, 2010, the new amended form becomes mandatory for the confirmation agreement. All pro-Se affirmation agreements that are not credit unions or real estate are automatically consulted, regardless of whether there has been a presumption of undue severity. If the confirmation agreement applies to real estate and/or a credit union, no further action will be taken. Debtors should not rush to enter into a confirmation agreement.
The debtors mainly filed a Chapter 7 because they could not pay their bills. The key idea behind Chapter 7 is that a debtor makes a fresh start by eliminating his bills.