In the case of In re Jerry and Carol Fields, Case No. 12-39084, which you can read on this website, U.S. Bankruptcy Judge Letitia Paul denied approval of the Reaffirmation Agreement that the debtors has entered into with Green Tree Servicing, LLC.

The Court noted that the debtors have $1583.90 in social security income, and $2695.03 in living expenses. She found that this caused there to be a presumption of undue hardship, and while the male debtor testified that he had been released to go back to light-duty work, there was not enough evidence to "rebut" or overcome the presumption of undue hardship. So she denied the reaffirmation agreement. She basically ruled that the debtors had not proven to her satisfaction that they could afford to pay the mobile home notes, which were almost $500 per month.

But she went on to say that this does not mean that the debtors will necessarily lose the mobile home, and that they don't have to leave the property or turn it over to Green Tree, since the debtors are current on their payments. It just means that the debtors' "personal liability" for the debt has been discharged, and they can keep the mobile home so long as they remain current on it.


J Thomas Black
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Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization