A Motion For Approval of Reaffirmation Agreement is a legal document used to ask a court to approve a reaffirmation agreement between a debtor and a creditor. A reaffirmation agreement is an agreement between a debtor and a creditor that states that the debtor agrees to continue to be liable for a debt that would otherwise be discharged in bankruptcy. The Motion For Approval of Reaffirmation Agreement seeks to have the court approve the agreement so that it can be enforced. There are two types of Motion For Approval of Reaffirmation Agreement: a voluntary motion and a contested motion. A voluntary motion is used when both parties agree to the terms of the agreement and seek the court’s approval. A contested motion is used when one or both parties disagree with the terms of the agreement and the court must decide whether to approve the agreement.
Motion For Approval of Reaffirmation Agreement
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How to fill out Motion For Approval Of Reaffirmation Agreement?
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FAQ
For debtors, reaffirming a loan may provide benefits such as improved credit scores or access to additional financing options in the future. However, the main advantage of reaffirming a debt is that it allows a debtor to keep an asset that would otherwise be lost in their bankruptcy case.
Reaffirmation agreements, although required by the bankruptcy laws for every secured debt that the debtor will continue to pay, are often not necessary in practice. This is because the only penalty for failure to sign the reaffirmation is that the creditor might repossess the collateral securing the loan.
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.
If the reaffirmation agreement is not filed with the bankruptcy court prior to the discharge date, it may be ineffective and the bankruptcy court can deny approval of the reaffirmation agreement altogether.
A reaffirmation agreement is where you agree to pay a debt even though you could have eliminated the debt in your bankruptcy case. When you reaffirm a debt, you continue to be legally responsible for paying it back. This gives the creditor some legal rights.
Given these significant consequences, you must make sure that you understand the terms of a reaffirmation agreement before signing, including (1) the amount that you will owe, (2) the timing of the payments and (3) any right the creditor may have to take away the property if you fail to make payment.
A reaffirmed debt remains your personal legal obligation to pay. Your reaffirmed debt is not discharged in your bankruptcy case. That means that if you default on your reaffirmed debt after your bankruptcy case is over, your creditor may be able to take your property or your wages.