Problem 7-10: Markell, a Chapter 7 debtor, owns a 2017 Chevrolet. He owes Blue Sky Auto Finance $17,000 on his car loan. The interest rate on the loan is 7%. Blue Sky has perfected a security interest in the car. A standard price guide shows that a used car dealer would pay $10,000 for a 2017 Chevrolet, same model, same mileage as Markell's, and that a used car dealer would sell such a car for $13,000. The guide also suggest that average retail value is $11,500.

Markell wants to keep the car.

1. If Markell decides to redeem, what does he have to do?
2. As Markell's attorney, what do you tell him about the advantages or disadvantages of redemption as compared with reaffirmation?

Problem 7-11: Debtor owns a parcel of real property worth $70,000. It is subject to a first mortgage with a balance of $45,000 and a judicial lien securing a judgment against the debtor in the amount of $50,000. The debtor is current on the first mortgage and the mortgage is amendable to a reaffirmation so that the debtor can keep the house. Therefore, debtor proposes to pay the holder of the judicial lien $25,000, which the debtor has borrowed from his mother, in order to secure the release of its lien. Will this plan work? Recall Dewsnup v. Timm before answering. PLEASE CITE THE CASE IN YOUR ANSWER

Problem 7-12: D files for Chapter 7 bankruptcy. Which of the following debts should D consider reaffirming, and why?

1. $11,000 to MasterCard
2. $2,200 to the family orthodontist
3. $3,300 debt co-signed by his sister
4. $4,444 debt to the credit union at D's employer arising from a loan in which D's credit application was inaccurate and incomplete
5. $5,500 debt secured by a security interest in D's car

Problem 7-13: The new credit manager of a client asks the following questions about reaffirmation procedure:

1. Timing: Can a reaffirmation agreement be entered into before bankruptcy? After the bankruptcy discharge?
2. Role of the Bankruptcy Judge: Does the reaffirmation agreement have to be filed with the bankruptcy judge? Approved by the bankruptcy judge?
3. Debtor's Attorney: In negotiating the terms of the reaffirmation agreement, can the creditor deal with the debtor directly or does it have to deal with the debtor's attorney? Will the debtor's attorney care whether his client enters into a reaffirmation agreement?

Problem 7-14: You represent Nickles, a debtor in a Chapter 7 case. Nickles is disabled and his only source of income, both now and for the foreseeable future, is a monthly disability payment from Social Security in the amount of $1,250. Nickles owns a five-year-old Chevrolet that he financed through GMAC. He still owes $6,500 on the loan. At best, the car might be worth $3,500. Nickles resides out in the country and the Chevy is his only form of transportation. Nickles does not have the cash to redeem the car, so he proposes to reaffirm the debt to GMAC, which is amenable to the idea. This will entail monthly payments of about $400 each. You caution Nickles against this, but he responds, "are you going to come out here to drive me to my doctors' appointments"? Will you sign the affidavit required under section 524(c)(3). If not, what then; you giving him a ride?

Problem 7-15: You file a Chapter 7 petition for Steve and Lynn Jamo (Debtors"). Kentucky Fried Credit Union ("KFCU) had a first mortgage ("Mortgage") on the Debtors' home. Debtors had missed three Mortgage payments before filing their bankruptcy petition, Debtors also were indebted to KFCU on several unrelated, unsecured loans. KFCU contacts the Debtors about reaffirming the Mortgage. KFCU tells the Debtors that it is unwilling to agree to reaffirmance of the Mortgage unless the Debtors also agree to reaffirm the unsecured loans. KFCU's attorney tells you that unless the Debtors agree to reaffirm all of their KFCU loans, KFCU will foreclose on the house as soon as the Chapter 7 case ends. WHAT DO YOU DO NEXT?

Problem 7-16: Epstein files for bankruptcy in a pro se case, Within 30 days of fling he states his intention to reaffirm a debt ($20,000) secured by a lien on his somewhat run-down Lexus, currently valued at $2,000. Epstein really likes that car. At the time of filing, Epstein was current on the loan. Lexus Financial Services readily agrees to the reaffirmation, but, because of the presumption of undue hardship in section 524(m)(1), court approval is necessary and the

court refuses to approve the agreement as not being in Epstein's best interest. As long as he continues to keep the monthly payments current, can Epstein retain his car? See In re Moustafi, 371 B.R. 434 (Bankr. D. Ariz. 2007). PLEASE CITE THE CASE IN YOUR ANSWER.

Problem 7-17: Ponoroff owns a house subject to a mortgage. He is current on this obligation even though the loan exceeds the current value of the house. The mortgage instrument does not contain a "bankruptcy default clause." The rest of Ponoroffs financial life is in shambles, so he has to file under Chapter 7. If Ponoroff does not reaffirm the mortgage debt can the mortgagee go ahead and foreclose? Does it matter whether Ponoroff has kept his homeowner's insurance

current? Even if the mortgagee could obtain relief from stay would it really want to foreclose? Might your answer to the last question perhaps be different today than it would have been before the financial crisis of 2008-09?

Problem 7-18: Markell owns a car subject to a lien in favor of Fourth Second Bank (FSB") securing a debt of $5,000. The only events of default listed in the security agreement are (1) failure to make a required payment when due, and (2) failure to insure the vehicle. Markell is current on the debt and has the car insured, but he has been forced to file for Chapter 7 relief because of problems with other creditors. In his statement of intention with respect to the debt. Markell indicated an intent "to surrender the vehicle," but he has yet to do so. FSB, therefore, has filed a motion seeking to compel Markell to comply with his statement of intent by turning the vehicle over to FSB. How should the court rule? See In re Seiffert, 2019 WL 1284299 (Bankr. N.D. Tex. 2019). PLEASE CITE THE CASE IN YOUR ANSWE