What the heck is a re-affirmation agreement?
Good question. A re-affirmation agreement is an agreement where you "re-affirm" the terms of typically a car note or home mortgage loan. When you file chapter 7 bankruptcy, you have to list ALL your debts and your assets. All your debts are discharged unless you decide to "re-affirm" a particularly debt usually a car or house. The agreement is sent by your mortgage company or car finance company and then filled out by your attorney, signed by him (some attorneys will not sign the re-affirmation agreement) and then forwarded to you for your signatures and mailing. Once the creditor receives the re-affirmation agreement, it must be filed with the court within a certain time frame. I have provided a link to a re-affirmation form for your reference and possible use. You would need to know the exact terms of your loan (percentage rate, balance, payment) in order to accurately fill out this agreement. This form will give you an idea of what the agreement is about and what information is contained therein.
Under Federal Rules of Bankruptcy Procedure 4008, you and your creditor have 60 days from the meeting of creditors to file this agreement with the court. The meeting of creditor is called a 341 meeting. At this meeting, you will be "interviewed" by Trustee that works for the US Trustee's Office. The bankruptcy court does have the ability to enlarge or increase the 60 day period. FRBP4008. I receive calls years down the road asking me whether a re-affirmation agreement was filed in a particular case. Sometimes a creditor will not forward an agreement to my office or does not file the agreement within the allotted time and therefore the 60 days expires. Not to worry. As long as you continue to pay on the note, a creditor will not foreclosure on your home or repossess your car.
Now you know what a re-affirmation agreement is. It basically takes a discharged debt and resurrects it and brings the debt outside of bankruptcy. You have to continue to be current with your car note and mortgage loan.
/s/ Mark Lewis, Esq.