Chapter 7 debtors and one of their secured creditors entered into a reaffirmation agreement. Debtors filed their case with the advice and assistance of an attorney. Debtors’ attorney did not sign the reaffirmation agreement. Creditor and debtors, on their own behalf, filed a joint motion to set a hearing to consider approval of the reaffirmation agreement, and debtors filed a motion to defer entry of the order of discharge to permit the court to hold a hearing on approval of the reaffirmation agreement prior to entry of the discharge.
The Court denied both motions; the creditor appealed; and creditor filed a motion for stay pending appeal. Creditor sought to delay the entry of the order of discharge asserting that its appeal would be moot if the discharge order entered. Judge Campbell denied the creditor’s motion for stay pending appeal. The Court’s conclusion to deny stay of the entry of the order of discharge rests on the language of section 524(c)(1) which conditions enforceability of a reaffirmation agreement upon the agreement having been made (as opposed to filed or approved) before an order of discharge enters. The Court ruled that section 524(d), which requires the court to advise debtors who are not represented by an attorney in negotiating a reaffirmation agreement, does not apply to Chapter 7 cases where a debtor is represented by counsel.