Bankruptcy Recovery Network v. Brown (In re Brown)

ORDER REMANDING CASE

I. Introduction

Debtor William Brown filed a pro se Chapter 7 petition in February 1997. His bankruptcy schedules listed a 20-inch gold necklace as an asset of the estate with a stated value of $760. 1 The debtor scheduled the debt on this item as secured, subject to a purchase money security interest held by the jewelry store from which he purchased the necklace. Mr. Brown filed a statement of intention pursuant to 11 U.S.C. § 521 which indicated his intent to reaffirm the obligation.

The jewelry store assigned its claim to Bankruptcy Recovery Network (“BRN”). 2 BRN sent Mr. Brown three letters in April and May of 1997, during the pendency of the bankruptcy case, which asked him to sign a reaffirmation agreement provided with the first letter. Four days after the first letter, Mr. Brown sent an unsolicited payment of fifteen dollars. Seven days after the last letter, still before discharge, BRN called Mr. Brown to encourage him to sign the agreement. Mr. Brown never signed, nor did he file, any agreement with the Bankruptcy Court.

On June 4, 1997, Mr. Brown received the discharge of his bankruptcy. One month later, BRN informed him that the bankruptcy did…