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IN RE BAILEY

No. 10-5505.

664 F.3d 1026 (2011)

In re Jackie BAILEY; Peggy Bailey, Debtors. Salyersville National Bank, Appellant, v. Jackie Bailey; Peggy Bailey, Appellees.

United States Court of Appeals, Sixth Circuit.

Decided and Filed: December 12, 2011.

Attorney(s) appearing for the Case

ARGUED: John T. Hamilton , Gess Mattingly & Atchison, PSC, Lexington, Kentucky, for Appellant. Carolyn M. Friend , Friend & Associates, Georgetown, Kentucky, for Appellees. ON BRIEF: John T. Hamilton , Gess Mattingly & Atchison, PSC, Lexington, Kentucky, for Appellant. Carolyn M. Friend , Friend & Associates, Georgetown, Kentucky, for Appellees.

Before: KEITH, SUTTON and McKEAGUE, Circuit Judges.

OPINION

SUTTON, Circuit Judge.

Jackie and Peggy Bailey fell on hard times, forcing them to seek protection from their creditors through the bankruptcy laws. In the course of the bankruptcy proceeding, they signed a reaffirmation agreement with their mortgage lender, which allowed them to stay in their home, obligated them to continue making their full mortgage payments after the bankruptcy and was premised on the assumption (later proved false) that the...

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