In Re Reed

MEMORANDUM OPINION

TERRENCE L. MICHAEL, Bankruptcy Judge.

Most balloons, with their vibrant colors and creative designs, are pretty. Most balloon payments, which require borrowers to come up with a large sum of money in a short period of time, are not. In what is becoming a trend in this Court, this case involves a reaffirmation agreement containing a significant balloon payment. The Court is asked to approve the agreement on the basis that the lender will, when the time comes, refinance the final balloon payment. The lender’s promise satisfied debtors and their counsel. The question is whether…