A debtor in a bankruptcy case may decide to remain legally obligated to pay a debt that would otherwise be discharged in bankruptcy. This is called reaffirming a debt. Reaffirming a debt is voluntary; debtors are not required to reaffirm any debt.
The Bankruptcy Code allows debtors to reaffirm debts, but an agreement to reaffirm a debt will be enforceable despite the bankruptcy discharge only if it complies with specific procedures.
A reaffirmation agreement must be filed on Form B2400 and be accompanied by a Reaffirmation Agreement Cover Sheet (Form B427). If the reaffirming debtor is represented by an attorney, and the agreement complies with 11 United States Code § 524(c), no hearing for approval of such an agreement is generally necessary. If the reaffirming debtor is not represented by an attorney, the court will schedule a hearing. You must appear in person at the hearing. The judge will ask questions to determine whether the reaffirmation agreement imposes an undue hardship on you or your dependants and whether it is in your best interests. Since reaffirmed debts are not discharged, the bankruptcy court will normally approve reaffirmation agreements only when the debt is secured by collateral that is important to your daily activities.
Forms:
- Form B 427 - Reaffirmation Agreement Cover Sheet (required with all Agreements)
- Form B 2400A - Reaffirmation Documents
- Form B 2400B - Motion for Approval of Reaffirmation Agreement (required if debtor(s) is pro se or not represented by counsel during the course of negotiating the agreement)
- Optional Form-Form B 2400 A/B Alt (combined Reaffirmation Agreement with Motion for Approval)