I just got a call from a creditor asking if my client was going to reaffirm a debt secured by some personal property. I asked if they were offering any concessions, like a reduction in interest rate, in exchange for the reaffirmation agreement. The creditor’s rep. said that no, they only agree to a reduction in interest rate in Chapter 13’s, not in Chapter 7’s.

She didn’t get why I was laughing. The only reason they “agree” to a reduction in interest rates in a Chapter 13 is because the law requires it. They can either go along (or “agree”) or get sued for contempt of court and violation of a confirmation order. She really thought that this was some magnanimous deal her company did of its own free will for people who filed a chapter 13.

Creditors — you gotta love ’em.

Elaine