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Commonly Asked Questions about Bankruptcy Reaffirmation Agreement

Given these docHub consequences, you must make sure that you understand the terms of a reaffirmation agreement before signing, including (1) the amount that you will owe, (2) the timing of the payments and (3) any right the creditor may have to take away the property if you fail to make payment.
When a lender receives your completed reaffirmation agreement, it will file it with the bankruptcy court. The court will then schedule a hearing to discuss the reaffirmation and decide whether or not to approve the agreement. Get debt relief now.
A reaffirmation agreement shall be filed no later than 60 days after the first date set for the meeting of creditors under 341(a) of the Code. The reaffirmation agreement shall be accompanied by a cover sheet, prepared as prescribed by the appropriate Official Form.
Reaffirmation is an agreement by a debtor, to a lender, to repay some or all of their debt. Debtors make reaffirmation agreements purely voluntarily. When a borrower reaffirms a debt, this is noted by credit reporting agencies, which then register that the person will make regular, on-time payments.
Creditors holding a security interest that they want to protect post-bankruptcy will request that a Reaffirmation Agreement is signed. They will prepare it and provide it to your attorneys office for review.
If you can afford to keep the secured property and continue making payments, it may be necessary to sign a reaffirmation agreement, unless the creditor agrees otherwise. If you decide that you cannot afford to keep the property, you must return it to the creditor.
If you want to file a reaffirmation agreement, you need to do so within 60 days of the first date of the meeting of creditors. Once you submit it, it must be accepted by the creditor. Once that happens, the court wont approve the agreement until youre eligible for immediate discharge.
For example, if a debtor reaffirms a car loan for $15,000 and the car securing the loan is worth $8,000, then, if the debt or defaults, the creditor may repossess the car and the debtor may still be liable to the creditor for $7,000 (the difference between the amount of the l oan and the value of the car at the time it Bankruptcy: Understanding Reaffirmation Agreements citybarjusticecenter.org stories publications citybarjusticecenter.org stories publications
What Happens at a Reaffirmation Hearing? At the reaffirmation hearing, the judge will explain any concerns he or she has with the terms of your agreement. In addition, the judge will ask you certain questions to determine whether reaffirming the debt is in your best interest.