What is a reaffirmation agreement? What does the bankruptcy court require when a debtor wants to enter this type of agreement with a creditor? Why would a debtor ever want to enter into this type of agreement?
What will be an ideal response?
A debtor may strike an agreement with a creditor to waive the discharge of the debt in a bankruptcy proceeding. This is known as a reaffirmation agreement. For example, imagine one of the debtor's debts is a car loan and she does not want it to be discharged. Instead, she wants to keep her car by continuing her monthly payments. To achieve her objective, the debtor may enter a reaffirmation agreement with the creditor before the discharge is entered. The debtor and the creditor must complete and sign a Form 240A Reaffirmation Agreement, which includes the nature of the debt, value of the collateral, and reason for reaffirmation. Form 240 must also be accompanied by a reaffirmation cover sheet. The debtor and creditor have to appear before a bankruptcy judge who determines whether it is in the best interest of the debtor to reaffirm the debt. A creditor who enters into a reaffirmation agreement with a debtor retains all of its legal and equitable rights to collect the debt and may pursue the debtor in satisfaction of this obligation.
You might also like to view...
The executive branch of government has a great deal to do with the laws passed by the legislative branch: the executive branch has the job of enforcing laws and the head of the executive branch may try to veto a newly passed law.
Answer the following statement true (T) or false (F)
Do you think that a successful court reporter has to score 90 or above on such a quiz?
What will be an ideal response?
The court employee who assists the court and the judge by filing documents, marking and safeguarding evidence, reviewing documents that are submitted to the judge, and performing other similar tasks is known as a court _____
Fill in the blank(s) with correct word
Explain the main differences between civil and criminal law.
What will be an ideal response?