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Reaffirmation Agreement

Drafts Reaffirmation Agreements under 11 U.S.C. § 524(c) for U.S. bankruptcy proceedings. Produces Official Form 240A-compliant documents with agreement summary, original/modified loan terms, debtor and attorney certifications, and court approval sections. Use when a debtor reaffirms a dischargeable debt to retain secured collateral such as vehicles or homes.

ID: 3a7064f3-5fd3-48c8-bbd8-bdbb2a36f76b Version: 0.1.0 License: Apache-2.0 Author: CaseMark Language: en Added: 2026-06-15
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Reaffirmation Agreement

Drafts a court-ready reaffirmation agreement allowing a debtor to retain secured collateral by voluntarily reaffirming a dischargeable debt under 11 U.S.C. § 524(c). Must comply with Bankruptcy Rule 4008 and Official Form 240A.

Prerequisites

Collect before drafting:

  1. Parties — debtor/creditor legal names, addresses, case number, chapter filed
  2. Original loan — date, principal, interest rate, payment amount/frequency, maturity
  3. Current status — outstanding balance (principal + accrued interest + fees), payment history, default status
  4. Collateral — description, current fair market value, lien position
  5. Modified terms (if any) — reduced rate, extended term, principal reduction
  6. Schedule I and J — debtor's current income and expenses for undue hardship analysis
  7. Representation status — whether debtor has counsel (determines court approval requirement)

Document Structure

Part A: Agreement Summary

Present as a table:

Field Value
Debtor Name {name}
Case Number {case no.}
Creditor Name {name}
Total Debt Reaffirmed ${amount}
— Principal ${amount}
— Accrued Interest ${amount}
— Fees/Costs ${amount}
Collateral Description {description}
Collateral Fair Market Value ${amount}
Annual Percentage Rate {rate}%
Monthly Payment ${amount}
Payment Duration {months/years}
Total of Payments ${amount}

Part B: The Agreement

  1. Party identification — full legal names, addresses
  2. Original loan terms — date, principal, rate, payment, frequency, maturity
  3. Reaffirmed terms — state whether original or modified terms apply
  4. If modified, include side-by-side comparison:
Term Original Reaffirmed
Interest Rate {orig}% {new}%
Monthly Payment ${orig} ${new}
Remaining Term {orig} {new}
Total Remaining ${orig} ${new}

Part C: Debtor Certification

Debtor certifies under penalty of perjury:

  • Agreement is voluntary and not required
  • Debtor can make required payments
  • Agreement does not impose undue hardship on debtor or dependents
  • Debtor understands right to rescind within 60 days after filing or before discharge, whichever is later (§ 524(c)(4))
  • Debtor understands default allows repossession AND deficiency pursuit

Part D: Attorney Certification

Required when debtor is represented. Attorney certifies:

  • Agreement fully explained to debtor
  • Debtor entered agreement voluntarily with informed consent
  • Debtor advised of legal effect, consequences, and default consequences
  • Attorney believes debtor can afford payments
  • Agreement does not impose undue hardship

Part E: Court Approval

Required when:

  • Debtor is not represented by counsel, OR
  • Schedule I/J shows income minus expenses insufficient to cover reaffirmed payments

Include notice of scheduled hearing; court must find (1) no undue hardship and (2) agreement is in debtor's best interest.

Signature Block

Include signature lines for:

  • Debtor — signature, printed name, date
  • Creditor — signature, printed name, title, date
  • Debtor's attorney (if applicable) — signature, printed name, bar number, date
  • Notarization block — include if required by local rules

Pitfalls and Checks

  • Rescission rights are mandatory — omission renders the agreement unenforceable under § 524(c)(4)
  • No coercion language — agreement must affirmatively state the debtor is not required to reaffirm
  • Default consequences — prominently warn: creditor may repossess collateral AND pursue deficiency balance
  • Collateral-to-debt ratio — if debt substantially exceeds collateral value, flag for additional disclosure; vulnerable to judicial scrutiny under undue hardship standard
  • U.S. Trustee review — draft anticipating objection; economic justification must be apparent on the face of the document
  • Local rules — verify whether the bankruptcy court requires notarization or additional local forms
  • Plain language — maintain legal precision while ensuring the debtor can actually understand the obligation

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