Official Form 427 Reaffirmation Agreement

Chapter 7 debtors must submit a letter of intent within 30 days of the date of the petition or the date of the meeting of 341, depending on the previous date. [1] They must fulfill their stated intention within 30 days of the date of the first meeting of 341[2] or within 45 days if the creditor has a guarantee of purchase on the guarantee. [3] Confirmation agreements must be filed with the Court of Justice within 60 days of the first date of the 341 session. [4] This period may be extended, but confirmation agreements must be submitted before the debtor is listed as a discharge. [5] The debtor may revoke a confirmation agreement by resigning the creditor before going to the debtor`s discharge or within 60 days of filing the agreement, depending on what happens later. [8] Think of the case of a bank with a security interest in the debtor`s vehicle and an unsecured debt resulting from a credit card. The bank requires the debtor to confirm the two debts in order to retain the vehicle and sends the debtor separate agreements proposing to repeat the two debts in accordance with their respective contractual terms. The debtor signs both and they are deposited on time. The bank seems to have won the battle. However, it will lose the war, because as soon as the debtor renounces the credit card agreement, the bank will have no legal basis to take back the vehicle, unless the debtor is late for the confirmed loan for the vehicle. On the other hand, if the debt is dealt with in a single agreement, the debtor cannot denounce the agreement without risking the loss of the vehicle.

However, this strategy should be avoided if one of the debts is secured by real estate, so that the creditor does not accidentally waive the anti-modification protections granted to mortgage lenders in Chapter 11 or 13. [9] If the debtor or the debtor`s lawyer has not provided a statement or affidavit that the confirmation agreement does not impose undue severity on the debtor, the confirmation agreement is only valid if the court allows it. [10] The court must find that the agreement is in the best interests of the debtor and does not constitute “unreasonable hardness”. Unreasonable hardness is presumed when the debtor`s monthly income, net of his monthly payments, does not leave enough cash to make the payments required in the confirmation agreement. [11] This presumption can be rebutted if the debtor provides a written statement of additional sources of funding (for example. B donations or contributions from family members) that can be used to cover potential deficits. [12] However, when the confirmation agreement is with a credit union, there is no presumption of unwarranted harassment. [13] Since this can significantly affect a spinnle`s ability to get out of a new start and make the most of it, personal property confirmations (including cars) must be certified by the debtor`s lawyer or approved by the bankruptcy court.

Most consumer insolvency lawyers only confirm whether the value of the vehicle is greater than the balance remaining on the loan. To confirm a bankruptcy debt, you must ask your creditor to send you deposit documents consisting of a confirmation cover sheet, a confirmation agreement and an application for approval of the confirmation agreement. The creditor must complete most or all of these documents before providing them to you. Here is Andy Miofsky`s ™ five simple steps to complete the debtor`s share:#1 After receiving your confirmation agreement, the first and most important step is to read it from start to finish.