In re Johnson
| Decision Date | 06 April 2000 |
| Docket Number | Bankruptcy No. 99-45486. Adversary No. 99-4499. |
| Parties | In re Gloria JOHNSON, Debtor. Comerica Bank, Plaintiff, v. Gloria Johnson, Defendant. |
| Court | United States Bankruptcy Courts. Tenth Circuit. U.S. Bankruptcy Court — Eastern District of Michigan |
255 B.R. 696 (2000)
In re Gloria JOHNSON, Debtor.
Comerica Bank, Plaintiff,
v.
Gloria Johnson, Defendant.
Bankruptcy No. 99-45486. Adversary No. 99-4499.
United States Bankruptcy Court, E.D. Michigan, Southern Division.
April 6, 2000.
Hugh Robert Pierce, Royal Oak, MI, for defendant.
Darryl J. Chimko, Elizabeth M. Abood, Rochester Hills, MI, for plaintiff.
DECISION and ORDER
BURTON PERLMAN, Bankruptcy Judge.
This adversary proceeding arises in a Chapter 7 case and seeks to hold nondischargeable a debt owed by debtor/defendant to plaintiff. Defendant had filed a prior Chapter 7 case in connection with which she had entered into a Reaffirmation Agreement with plaintiff. Defendant did not complete payments to plaintiff under the Reaffirmation Agreement and has now filed another Chapter 7 case within the time limits permitted by the Bankruptcy Code. Defendant has listed the remaining debt owing plaintiff in her bankruptcy
The essential facts in the case emerge from the allegations of the complaint which are largely admitted in defendant's answer. Thus, defendant admits the following allegations of the complaint:
5. On March 18, 1992, Defendant filed a previous Chapter 7 Petition for Relief, case number 92-03463-R.
6. Plaintiff was a Creditor of Defendant in the previous Chapter 7 case.
7. On April 27, 1992, Defendant executed a Reaffirmation Agreement and Declaration Regarding Reaffirmation whereby Defendant "agreed and understood that this Agreement is entered into in full settlement and satisfaction of Creditor\'s claim that this debt is nondischargeable pursuant to 11 U.S.C. 523." A copy of the Reaffirmation Agreement and Declaration Regarding Reaffirmation are attached as Exhibit A and incorporated herein by reference.
8. The documents attached as Exhibit A were filed with this Court on May 7, 1992.
9. Defendant lists Plaintiff as a Creditor in the present case based upon the balance still owing on the Reaffirmation Agreement.
* * * * * *
12. On the date Defendant filed her subsequent Petition for Relief on April 2, 1999, Defendant was indebted to Plaintiff in the amount of Three Thousand Two Hundred Sixteen and 24/100 ($3,216.24) Dollars.
Defendant denies the following allegations:
10. Defendant\'s reaffirmation acted as a waiver of this debt under 11 U.S.C. 524(c).
11. The debt is nondischargeable in the within proceeding pursuant to 11 U.S.C. 523(a)(10) and/or 11 U.S.C. 523(b).
The text of the Reaffirmation Agreement, attached as Exhibit A to the complaint, in its entirety states:
I/We, Gloria Johnson, notwithstanding the fact that I/we have filed for relief under Chapter 7 of the Bankruptcy Reform Act of 1978, as amended, in the United States Bankruptcy Court, do hereby reaffirm and promise to pay to Comerica Incorporated, Creditor herein, the sum of $2,000.00, at 12% rate of interest set forth in the original document evidencing the transaction between the parties.
The aforementioned sum shall be payable in monthly installments of $40.00. The first monthly installment shall be due on the 1st day of June, 1992. Subsequent monthly installments shall be due on the 1st day of each month thereafter until the entire reaffirmed amount plus interest is paid in full.
In the event that any payment is more than fifteen (15) days late, as promised above, the terms of this Agreement shall be deemed to be in default, and there shall be forthwith due and payable all sums remaining upon...
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