Reaffirmation Agreement
Drafts a court-ready reaffirmation agreement allowing a debtor to retain secured collateral by voluntarily reaffirming a dischargeable debt under 11 U.S.C. § 524(c). Must comply with Bankruptcy Rule 4008 and Official Form 240A.
Prerequisites
Collect before drafting:
- Parties — debtor/creditor legal names, addresses, case number, chapter filed
- Original loan — date, principal, interest rate, payment amount/frequency, maturity
- Current status — outstanding balance (principal + accrued interest + fees), payment history, default status
- Collateral — description, current fair market value, lien position
- Modified terms (if any) — reduced rate, extended term, principal reduction
- Schedule I and J — debtor's current income and expenses for undue hardship analysis
- Representation status — whether debtor has counsel (determines court approval requirement)
Document Structure
Part A: Agreement Summary
Present as a table:
| Field |
Value |
| Debtor Name |
{name} |
| Case Number |
{case no.} |
| Creditor Name |
{name} |
| Total Debt Reaffirmed |
${amount} |
| — Principal |
${amount} |
| — Accrued Interest |
${amount} |
| — Fees/Costs |
${amount} |
| Collateral Description |
{description} |
| Collateral Fair Market Value |
${amount} |
| Annual Percentage Rate |
{rate}% |
| Monthly Payment |
${amount} |
| Payment Duration |
{months/years} |
| Total of Payments |
${amount} |
Part B: The Agreement
- Party identification — full legal names, addresses
- Original loan terms — date, principal, rate, payment, frequency, maturity
- Reaffirmed terms — state whether original or modified terms apply
- If modified, include side-by-side comparison:
| Term |
Original |
Reaffirmed |
| Interest Rate |
{orig}% |
{new}% |
| Monthly Payment |
${orig} |
${new} |
| Remaining Term |
{orig} |
{new} |
| Total Remaining |
${orig} |
${new} |
Part C: Debtor Certification
Debtor certifies under penalty of perjury:
- Agreement is voluntary and not required
- Debtor can make required payments
- Agreement does not impose undue hardship on debtor or dependents
- Debtor understands right to rescind within 60 days after filing or before discharge, whichever is later (§ 524(c)(4))
- Debtor understands default allows repossession AND deficiency pursuit
Part D: Attorney Certification
Required when debtor is represented. Attorney certifies:
- Agreement fully explained to debtor
- Debtor entered agreement voluntarily with informed consent
- Debtor advised of legal effect, consequences, and default consequences
- Attorney believes debtor can afford payments
- Agreement does not impose undue hardship
Part E: Court Approval
Required when:
- Debtor is not represented by counsel, OR
- Schedule I/J shows income minus expenses insufficient to cover reaffirmed payments
Include notice of scheduled hearing; court must find (1) no undue hardship and (2) agreement is in debtor's best interest.
Signature Block
Include signature lines for:
- Debtor — signature, printed name, date
- Creditor — signature, printed name, title, date
- Debtor's attorney (if applicable) — signature, printed name, bar number, date
- Notarization block — include if required by local rules
Pitfalls and Checks
- Rescission rights are mandatory — omission renders the agreement unenforceable under § 524(c)(4)
- No coercion language — agreement must affirmatively state the debtor is not required to reaffirm
- Default consequences — prominently warn: creditor may repossess collateral AND pursue deficiency balance
- Collateral-to-debt ratio — if debt substantially exceeds collateral value, flag for additional disclosure; vulnerable to judicial scrutiny under undue hardship standard
- U.S. Trustee review — draft anticipating objection; economic justification must be apparent on the face of the document
- Local rules — verify whether the bankruptcy court requires notarization or additional local forms
- Plain language — maintain legal precision while ensuring the debtor can actually understand the obligation
1---2name: reaffirmation-agreement3description: Drafts Reaffirmation Agreements under 11 U.S.C. § 524(c) for U.S. bankruptcy proceedings. Produces Official Form 240A-compliant documents with agreement summary, original/modified loan terms, debtor and attorney certifications, and court approval sections. Use when a debtor reaffirms a dischargeable debt to retain secured collateral such as vehicles or homes.4---56# Reaffirmation Agreement78Drafts a court-ready reaffirmation agreement allowing a debtor to retain secured collateral by voluntarily reaffirming a dischargeable debt under 11 U.S.C. § 524(c). Must comply with Bankruptcy Rule 4008 and Official Form 240A.910## Prerequisites1112Collect before drafting:13141. **Parties** — debtor/creditor legal names, addresses, case number, chapter filed152. **Original loan** — date, principal, interest rate, payment amount/frequency, maturity163. **Current status** — outstanding balance (principal + accrued interest + fees), payment history, default status174. **Collateral** — description, current fair market value, lien position185. **Modified terms** (if any) — reduced rate, extended term, principal reduction196. **Schedule I and J** — debtor's current income and expenses for undue hardship analysis207. **Representation status** — whether debtor has counsel (determines court approval requirement)2122## Document Structure2324### Part A: Agreement Summary2526Present as a table:2728| Field | Value |29|---|---|30| Debtor Name | {name} |31| Case Number | {case no.} |32| Creditor Name | {name} |33| Total Debt Reaffirmed | ${amount} |34| — Principal | ${amount} |35| — Accrued Interest | ${amount} |36| — Fees/Costs | ${amount} |37| Collateral Description | {description} |38| Collateral Fair Market Value | ${amount} |39| Annual Percentage Rate | {rate}% |40| Monthly Payment | ${amount} |41| Payment Duration | {months/years} |42| Total of Payments | ${amount} |4344### Part B: The Agreement45461. **Party identification** — full legal names, addresses472. **Original loan terms** — date, principal, rate, payment, frequency, maturity483. **Reaffirmed terms** — state whether original or modified terms apply494. **If modified**, include side-by-side comparison:5051| Term | Original | Reaffirmed |52|---|---|---|53| Interest Rate | {orig}% | {new}% |54| Monthly Payment | ${orig} | ${new} |55| Remaining Term | {orig} | {new} |56| Total Remaining | ${orig} | ${new} |5758### Part C: Debtor Certification5960Debtor certifies under penalty of perjury:6162- Agreement is voluntary and not required63- Debtor can make required payments64- Agreement does not impose undue hardship on debtor or dependents65- Debtor understands right to rescind within 60 days after filing or before discharge, whichever is later (§ 524(c)(4))66- Debtor understands default allows repossession AND deficiency pursuit6768### Part D: Attorney Certification6970Required when debtor is represented. Attorney certifies:7172- Agreement fully explained to debtor73- Debtor entered agreement voluntarily with informed consent74- Debtor advised of legal effect, consequences, and default consequences75- Attorney believes debtor can afford payments76- Agreement does not impose undue hardship7778### Part E: Court Approval7980Required when:81- Debtor is **not represented by counsel**, OR82- Schedule I/J shows income minus expenses **insufficient** to cover reaffirmed payments8384Include notice of scheduled hearing; court must find (1) no undue hardship and (2) agreement is in debtor's best interest.8586### Signature Block8788Include signature lines for:89- **Debtor** — signature, printed name, date90- **Creditor** — signature, printed name, title, date91- **Debtor's attorney** (if applicable) — signature, printed name, bar number, date92- **Notarization block** — include if required by local rules9394## Pitfalls and Checks9596- **Rescission rights are mandatory** — omission renders the agreement unenforceable under § 524(c)(4)97- **No coercion language** — agreement must affirmatively state the debtor is not required to reaffirm98- **Default consequences** — prominently warn: creditor may repossess collateral AND pursue deficiency balance99- **Collateral-to-debt ratio** — if debt substantially exceeds collateral value, flag for additional disclosure; vulnerable to judicial scrutiny under undue hardship standard100- **U.S. Trustee review** — draft anticipating objection; economic justification must be apparent on the face of the document101- **Local rules** — verify whether the bankruptcy court requires notarization or additional local forms102- **Plain language** — maintain legal precision while ensuring the debtor can actually understand the obligation103104---
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