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BANKRUPTCY COURTHearings are now neededwhen someone who hasdeclared bankruptcyreaffirms debts that weredischarged under thebankruptcy proceeding.Why does the law nowrequire such hearings?Debts Barred by Statutes of LimitationsA statute of limitations establishes the time frame within which aparty is allowed to bring suit. Different states set different time limitsfor the collection of a debt. Such variations can run from three to tenyears. When the document of indebtedness is under seal, some statesallow more time for collection. No new consideration is needed for adebtor to reaffirm a debt barred by the statute of limitations. The partialpayment of the debt will result in affirmation. After the debtor affirmsthe debt, the creditor is permitted the full term as provided by the statuteof limitations.Promises Enforced by Promissory EstoppelUnder the doctrine of promissory estoppel , a promise may beenforceable without consideration. The word promissory means “containingor consisting of a promise.” The word estoppel means “restrainton a person to prevent him or her from contradicting a previous act.” Thedoctrine is used to prevent injustice when a person changes his or herposition significantly in reliance on another person’s promise, and thepromise is not fulfilled. The court will “estop” the person who made thepromise from claiming that there was no consideration.Figure 8.2 shows that certain conditions must be met before a courtwill apply the principle of promissory estoppel:l The promise must be made to bring about action or forbearance byanother person who gave no consideration.l The party that gave no consideration must have relied upon thepromise and changed his or her position in a significant way.l Injustice can be avoided only by enforcing the promise.Chapter 8: Consideration 175