Danney

MEMORANDUM

Steven and Sallianne Danney appeal the District Court’s order which affirmed the Bankruptcy Court’s denial of the Danneys’ Motion for Contempt against Transamerica Home Loan. The Danneys claim that their second loan from Transamerica reaffirmed a discharged debt — the Danneys’ first loan from Transamerica — which had been discharged in the Danneys’ bankruptcy proceeding. The Danneys filed a Motion for Contempt arguing that Transamerica violated the permanent discharge injunction entered after the Danneys’ bankruptcy proceeding and that the Danneys’ second loan was legally unenforceable because Transamerica failed to comply with the requirements for reaffirmation agreements under 11 U.S.C. § 524 (c) and (d).

It is undisputed that the requirements of § 524(c) and (d) were not met here. Thus, the crucial issue is whether the Danneys’ second loan was an invalid reaffirmation agreement, as the Danneys contend, or a valid post-discharge agreement, as Transamerica contends. Transamerica argues that it had the right to foreclose on the Danneys’ home, a right which survived the Danneys’ discharge from bankruptcy. Transamerica further argues that its forbearance from…