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Summarizing by Amir Shachmurove

Venture Bank v. Lapides

Venture Bank v. Lapides (In re Lapides), Case No. 14-3085 (8th Cir., August 25, 2015)
Post-petition Change in Terms Agreement on third mortgage executed post-discharge and payments made thereunder were involuntary because agreement did not comply with the requirements of a reaffirmation agreement under section 524(c). A secured creditor's post-discharge forbearance is not sufficient to take a reaffirmation outside the purview of section 524(c). Actions taken to enforce the agreement and obtain payments thereunder violated the discharge injunction and debtor was entitled to damages therefor.
Procedural context:
Appeal from the district court for the District of Minnesota affirming bankruptcy court's order finding appellant in violation of discharge injunction and awarding appellee (debtor) damages.
Debtor and non-debtor spouse had pre-petition third mortgage with Venture Bank on their primary residence. After entry of the discharge, in connection with negotiations to induce Venture Bank to refinance the debtor's house, the debtor executed 3 separate Change in Terms Agreements whereby the debtor promised to pay both monthly payments and the entire discharged personal debt. Debtor ceased payments to Venture Bank who then sought to foreclose and have the Change in Terms Agreements declared enforceable against the debtor in state court. The action was removed to the bankruptcy court.
Loken, Bye, and Kelly, Circuit Judges

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