A reaffirmation agreement is an agreement between a chapter 7 debtor and a creditor that the debtor will pay all or a portion of the money owed, even though the debtor has filed bankruptcy. In return, the creditor promises that, as long as payments are made, the creditor will not repossess or take back its collateral.
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A reaffirmation agreement is an agreement by a chapter 7 debtor to continue paying a dischargeable debt (such as an auto loan) after the bankruptcy, usually for the purpose of keeping collateral (i.e. the car) that would otherwise be subject to repossession.
A reaffirmation agreement made by a debtor subsequent to entry of the discharge shall be declared invalid by the court. (D) Duties of Debtor’s Counsel.
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On August 27, 2014, the Bankruptcy Judges largely approved the Recommendations of the Steering Committee relating to how we process and review Reaffirmation Agreements. Starting October 15, 2014, here are the new uniform, district-wide rules: (1) Hearings on Reaffirmation Agreements.
Reaffirmation Agreement Package The goal of this package is to make it easier for debtors and creditors to understand how reaffirmation forms should be completed and, as a result, to reduce errors. There is a significant overlap of information requested in the Reaffirmation Agreement Cover Sheet and the Reaffirmation documents.
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-