In re: Thomas E. ROTH and Sharon F. Roth, Debtors; MIDLOTHIAN STATE BANK, an Illinois banking corporation, Appellant, v. Thomas E. ROTH and Sharon F. Roth, Appellees, 43 B.R. 484

Summary

Appellant was a holder of a second mortgage on appellees' residence, and entered into a reaffirmation agreement with appellees subsequent to filing for chapter seven liquidation. A hearing was held, but appellant and one of appellees did not appear. It was undisputed that the present appellee did not advise the court of the reaffirmation agreement, and the court did not admonish appellee concerning reaffirmation agreements. Not quite two years later, first mortgage holder filed a state court complaint for foreclosure, and appellant answered and filed counterclaims, while appellees answered both complaints. Appellant sought and obtained a deficiency judgment and appellees filed motions seeking to vacate. The bankruptcy court held that the reaffirmation agreement was unenforceable because admonition did not take place. On review appellants argued that appellee should have informed the court of the reaffirmation agreement and waived the admonishment requirement. The reviewing court ...