Venture Bank v. Lapides, No. 14-3085 (8th Cir. 2015)
Annotate this CaseThe Lapideses renewed a loan from Venture Bank secured by a third mortgage on their home. Howard subsequently filed for Chapter 7 bankruptcy. After Howard’s personal debts were discharged, the Lapideses executed two “Change in Terms Agreements,” each of which extended the maturity date of the loan for six months. When Howard ceased making payments under these agreements, Venture Bank sought a declaratory judgment that the agreements were valid and enforceable. Howard counterclaimed that Venture Bank’s efforts to obtain payments after his discharge violated the discharge injunction under 11 U.S.C. 524(a)(2). The bankruptcy court denied Venture Bank’s claim for a declaratory judgment and awarded Howard damages and attorney’s fees. The district court and Eighth Circuit affirmed, upholding a finding that Howard’s payments were not voluntary within the meaning of section 524(f) and did not comply with the requirements of a reaffirmation agreement under section 524(c). The post-discharge agreements served no purpose other than reaffirmation agreements in which Howard agreed to repay all of his discharged personal debt and lacked consideration.
Court Description: Loken, Author, with Bye and Kelly, Circuit Judge] Civil case - Bankruptcy. It is undisputed that the post-discharge Change In Terms Agreements debtor executed with Venture Bank were not enforceable Sec. 524(c)reaffirmation agreements because they were entered into after debtor obtained a discharge and because they were not filed with the bankruptcy court; there was ample evidence to support the bankruptcy court's finding that debtor's payments under the Change in Terms Agreements were involuntary within the meaning of Sec. 524(f) and that Bank had violated the discharge injunction.
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