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Reaffirming puts you personally on the hook for the debt, even after your discharge. The Court may not approve the reaffirmation if it is not in your best interest. The agreement is voluntary for you and for the creditor?the creditor may refuse to offer a reaffirmation.
What's a Presumption of Undue Hardship? A presumption of undue hardship arises when a filer's expenses exceed their monthly income. This shows there isn't enough money to cover the monthly payment that would be required by the reaffirmation agreement.
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.
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.
Agreeing to repay the excess loan amount in ance with the terms of the promissory note is called ?reaffirmation.? You can reaffirm an excess loan amount by signing a reaffirmation agreement with your loan servicer.
To cancel a reaffirmation agreement, you must notify the creditor. It is a good idea to notify the creditor in writing via certified mail with a return receipt postcard so you have proof that you have rescinded the agreement.
Even if the debtor signs a reaffirmation agreement, and the agreement is approved by the court, the debtor has 60 days after the agreement is filed with the court (or the date of entry of discharge, whichever is later) to change his/her mind and rescind the agreement.