a. Did the court agree to the reaffirmation?
b. Is the debtor's truck going to be reposed?
c. What might be the debtor's reason for the reaffirmation?
Two months before filing for bankruptcy, William Grisham bought a Dodge Truck (Nitro-V6 Utility 4D SLT 2WD). At the time of his bankruptcy filing, the vehicle was worth $16,000, but he owed $17,500 on it. The annual interest rate was 17.5%, the monthly payments were $400, and the payment schedule was almost 6 years. In addition, Grisham owed:
$29,000 to the IRS
$75,000 in alimony
$100,000 in student loans
$70,000 in unsecured debt
$274,000 total in addition to the truck
Grisham sought to reaffirm the truck loan. Should the court allow him to do so?