In re Schwass
United States Bankruptcy Court for the Southern District of California
378 B.R. 859 (2007)
Mary Schwass (plaintiff), who had granted Pacific Capital Bancorp (Pacific) a security interest in her vehicle, filed Chapter 7 bankruptcy and included a statement of intention to reaffirm the vehicle debt; when Pacific's counsel asked Schwass's counsel to prepare the reaffirmation agreement, Schwass's counsel replied it wasn't the debtor's obligation but offered to draft it for a fee payable by Pacific, which Pacific declined, insisting preparation was Schwass's responsibility. No reaffirmation agreement was filed within the required 30-day period, and Pacific moved for relief from the automatic stay, claiming Schwass failed to timely follow through on reaffirmation.
Whether the obligation to prepare a reaffirmation agreement in a bankruptcy falls on the debtor or on the secured creditor.