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Hugo owes Bank of Maryland $15,000. He files for bankruptcy….

Posted byAnonymous July 16, 2021December 11, 2023

Questions

Hugо оwes Bаnk оf Mаrylаnd $15,000. He files for bankruptcy. Normally, in bankruptcy, the debt would be wiped out at the end of the bankruptcy (discharge). Hugo does not want that to happen because the loan is for his car, so he would have to return his car for the debt to disappear. Hugo decides to reaffirm his debt to the Bank of Maryland, so he can keep his car even though he will still be liable for the debt. A few months after reaffirming the debt he changes his mind and claims the reaffirmation lacked consideration. Was the reaffirmation valid?

Hugо оwes Bаnk оf Mаrylаnd $15,000. He files for bankruptcy. Normally, in bankruptcy, the debt would be wiped out at the end of the bankruptcy (discharge). Hugo does not want that to happen because the loan is for his car, so he would have to return his car for the debt to disappear. Hugo decides to reaffirm his debt to the Bank of Maryland, so he can keep his car even though he will still be liable for the debt. A few months after reaffirming the debt he changes his mind and claims the reaffirmation lacked consideration. Was the reaffirmation valid?

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Tags: Accounting, Basic, qmb,

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