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If the Court denies the reaffirmation agreement, you are in technical default again. This is part of the trade2010off between Chapters 7 and 13. In exchange for a quick, efficient, inexpensive discharge of your debts, you give up control over the actions of creditors.
The reaffirmation hearing Your personal liability on a secured debt that isn't reaffirmed will be discharged. Even if you default on payments later, the creditor won't be able to come after you for a deficiency balance.
When you reaffirm a debt, it means you enter into an agreement with your lender to continue to making payments on the account rather than including it in your bankruptcy.
CHAPTER 7 BANKRUPTCY: RESCINDING REAFFIRMATION AGREEMENT This means that your mortgage debt will not be discharged in the bankruptcy and you will be liable for the debt. But it also means that you will get to continue living in your house.
Yes. You can cancel (or rescind) your reaffirmation agreement, even if a judge has already approved it. NOTE: WE STRONGLY RECOMMEND THAT YOU SPEAK WITH AN ATTORNEY TO ADVISE YOU ABOUT THE CONSEQUENCES OF CANCELLING A REAFFIRMATION AGREEMENT IN YOUR CASE.