In the bankruptcy case of
de la Fuente, Antoinette and Lenord; In re (De la Fuente v.
Wells Fargo Bank)
, the bankruptcy court denied the lender’s motion for entry of a final
judgment. The details of the bankruptcy case: When Wells Fargo Bank imposed
fees on the Chapter 13 debtors’ account, the debtors accused the bank
of violating the automatic stay and bankruptcy confirmation order. The
attorneys for the debtors and the bank announced that they had reached
a settlement on the matter. The bankruptcy court requested that the settlement
be submitted in writing; but the parties failed to do so because they
were unable to reach an agreement on the escrow amount. Eventually, the
bank filed a Motion for Entry of Final Judgment which was denied by the
bankruptcy court because approving it would violate the statue of frauds.
The bankruptcy court said: “In the suit at bar, the parties have
failed to provide a signed written agreement to the Court. Even though
the parties recited the terms of their settlement on the record, Texas
law mandates that real estate loan agreements be: (a) in writing; and
(b) signed by the party who has been charged with the promise. Here, the
parties have failed to satisfy either of these two requirements; the parties
have never submitted an agreed judgment which either they or their respective
counsel have signed.” As an added note, to protect yourself as a
debtor make sure that any settlements you come to with any creditors are
in writing. It is also advisable that debtors have an attorney review
any settlement agreements before signing and handing over money to creditors.(Source: Consumer Bankruptcy News, Volume 19, Issue 18, page 18)

Speak to a bankruptcy lawyer today