The use of the undue hardship standard in the reaffirmation agreement provision suggests that the undue hardship analysis should primarily focus on the current financial circumstances of a debtor in the Bankruptcy Code. As acquiesced by scholars, the reaffirmation contract provision is really the only other place undue difficulty seems into the Bankruptcy Code bes 59 See quick for Professor Rafael Pardo as Amicus Curiae, p. 11–13, Murphy v. U.S. Dept. Of Educ., No. 14-1691 (1st Cir. Oct. 25, 2016). An agreement that makes the debtor legally bound to repay a debt that would otherwise be discharged is enforceable only if a variety of requirements meant to safeguard the debtor’s fresh start are all satisfied under 11 U.S.C. § 524, the provision governing reaffirmation agreements. 60 11 U.S.C. § 524(m)(1).
Among these demands includes language that the contract must “not impose an undue difficulty on the debtor or perhaps a reliant associated with the debtor. ” 61 Id. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) clarified the “undue difficulty” standard when you look at the reaffirmation contract context by prov 62 Id. In the event that presumption arises, it may be rebutted as long as the debtor has the capacity to 63 Id. Continue reading A. Reaffirmation Agreements when you look at the Bankruptcy Code