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A. Reaffirmation Agreements within the Bankruptcy Code

A. Reaffirmation Agreements within the Bankruptcy Code

Into the Bankruptcy Code, the employment of the undue hardship standard into the reaffirmation contract supply shows that the undue difficulty analysis should mainly concentrate on the current monetary circumstances of a debtor. As acquiesced by scholars, the reaffirmation contract supply is the only real other place undue hardship 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 agreement must “not impose a hardship that is undue the debtor or even a dependent of this debtor. ” 61 Id. The Bankruptcy Abuse Prevention and customer Protection Act of 2005 (BAPCPA) clarified the “undue difficulty” standard into the reaffirmation contract context by prov 62 Id. In the event that presumption arises, it could be rebutted as long as the debtor has the capacity to 63 Id. Appropriately, the provision centers around the ability that is debtor’s repay a financial obligation based on the debtor’s disposable earnings, which eventually steps the end result that the reaffirmation contract could have regarding the future livelihood for the debtor.