Can A Reaffirmation Agreement Be Filed After Discharge

Cancelling a confirmation agreement is a very simple process and usually costs the debtor nothing. However, if the confirmation agreement was filed shortly before the end of the proceedings, the insolvency proceedings may be closed before the expiry of the sixty-day period for the termination of a confirmation agreement. In this case, you need to reopen the bankruptcy case, which will cost you $235.00 for the court registration fee. This rule is amended to comply with Article 524(d) of the Code as amended in 1986. A hearing within the meaning of Article 524 (d) is not mandatory unless the debtor wishes to enter into a confirmation agreement. Unfortunately, after the debt is confirmed, you find that you can`t afford to continue your mortgage payments. And now? I hope you haven`t taken too long to discover that you can`t afford to keep your home. The BankruptcyCode gives you the option to change your mind about confirming secure ownership, but you need to act quickly. 11 U.S.C. § 524 provides that you may terminate the Stand-By Agreement “at any time prior to termination of termination or within sixty days of the agreement being filed with the court, whichever occurs in the future.” All you have to do is file a declaration of resignation in court and send notice to the secured lender.

No hearing or hearing is required. Any agreement to be confirmed must be concluded before the opening of the landfill. If you are in the process of confirming a debt and you believe that it will not be filed before the expiry of the debt relief period, notify the agent`s office in writing to delay the introduction of the discharge until the new declaration is filed. The confirming arrangement essentially creates a new debt contract between the debtor and the creditor. It allows the creditor to continue to collect the debt you owe – the debt will not be recovered as part of the bankruptcy. To conclude a repeatability agreement, the debtor cannot be late in the loan. Typically, debtors who sign stand-by arrangements do so to retain ownership of a secured debt, such as for example. B a car or a house, or to prevent a co-signer from being solely responsible for a debt after an insolvency discharge.

While signing a stand-by agreement may seem like a good idea, be aware that approving such an agreement means that you can be sued late by the creditor for the debt, even if the rest of your debt has been discharged by bankruptcy.

This entry was posted in Uncategorized. Bookmark the permalink.