What are the legal requirements of a reaffirmation agreement?

What are the legal requirements of a reaffirmation agreement?

As part of a reaffirmation agreement, the debtor must sign an affidavit that states: The debtor is choosing to reaffirm the debt; The debtor understands the legal ramifications of reaffirming the debt; and. The reaffirmation will not cause undue hardship to the debtor or any of his or her dependents.

Can you file a reaffirmation agreement after discharge?

Can you file a reaffirmation agreement after discharge? Once a discharge order has been entered in your bankruptcy case, you can no longer reaffirm any of the debts that were included in the discharge agreement. The same goes for if your case has been closed by the court.

How long do you have to rescind a reaffirmation agreement?

60 days
Remember that the deadline to cancel the agreement is either the date of discharge, or 60 days after the reaffirmation agreement was filed with the Court, whichever date is later.

Can you negotiate a reaffirmation agreement?

You can start negotiating when you receive the reaffirmation agreement, or, if you’d like to speed up the process, you can contact the lender as soon as you file your bankruptcy petition. Don’t worry that the bank might be put off when you ask for better loan terms—people regularly try to negotiate for lower rates.

Who files the reaffirmation agreement?

An executed reaffirmation agree- ment may be filed by any party, including the debtor or a creditor. It must be filed within 60 days after the first date set for the first meeting of creditors in the bankruptcy case unless the deadline is extended by the bankruptcy court.

What happens if a reaffirmation agreement is denied?

Either way – if the reaffirmation agreement is not approved, your personal liability is discharged. And – just like when the court denies approval of the reaffirmation – most lenders will simply keep everything the same, as long as you make timely payments and keep the vehicle insured.

Does a reaffirmation agreement have to be filed?

A reaffirmation agreement must be entered into before the grant- ing of a discharge and filed with the clerk of the bankruptcy court for it to be valid and binding. An executed reaffirmation agree- ment may be filed by any party, including the debtor or a creditor.

What happens if I did not reaffirm my mortgage?

If you do not reaffirm the mortgage, your personal liability for paying the debt represented by the promissory note is discharged in your bankruptcy case. The company can foreclose the mortgage and force a foreclosure sale if you stop making payments.

Can a creditor rescind a reaffirmation agreement?

Reaffirmation agreements can be rescinded any time before the Court issues the discharge, or within 60 days after the agreement is filed with the Court, whichever is the later. Notice of the rescission must be given to the creditor.

How do I file a reaffirmation agreement?

Do you have to sign a reaffirmation agreement?

Reaffirmation agreements are strictly voluntary. A debtor is not required to reaffirm any of his or her debts. If a debtor signs a reaffirmation agreement, the debtor agrees to pay a debt that otherwise might be discharged in his or her bankruptcy case.

What happens if a debtor defaults on a reaffirmation agreement?

Once bound by a reaffirmation agreement, the debtor will be perso- ally liable for the debt. If the debtor defaults later, the creditor can obtain a judgment against the debtor personally in addition to repossessing the property securing the debt.

When to file a reaffirmation agreement in bankruptcy?

A reaffirmation agreement must be entered into before the grant- ing of a discharge and filed with the clerk of the bankruptcy court for it to be valid and binding. An executed reaffirmation agree- ment may be filed by any party, including the debtor or a creditor.