Reaffirmation Settlement Agreement for the United States

Reaffirmation Settlement Agreement Template for United States

A Reaffirmation Settlement Agreement is a legally binding document used in U.S. bankruptcy proceedings that allows a debtor to reaffirm their obligation to pay a specific debt that would otherwise be discharged in bankruptcy. This agreement, governed by Section 524 of the U.S. Bankruptcy Code, requires specific disclosures and often court approval. It represents a voluntary agreement between the debtor and creditor to maintain the original debt obligation, typically used for secured debts where the debtor wishes to keep the collateral.

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What is a Reaffirmation Settlement Agreement?

A Reaffirmation Settlement Agreement becomes necessary when a debtor in bankruptcy wishes to maintain certain debt obligations rather than having them discharged. This document, regulated under U.S. bankruptcy law, typically involves secured debts where the debtor wants to keep the collateral (such as a car or house). The agreement must include specific statutory disclosures, the terms of repayment, and often requires court approval to ensure the debtor's interests are protected. It must be executed before the bankruptcy discharge and includes provisions for financial disclosures, repayment terms, and consequences of default.

What sections should be included in a Reaffirmation Settlement Agreement?

1. Parties: Identification of creditor and debtor, including bankruptcy case details

2. Background: Original debt details and bankruptcy filing context

3. Definitions: Key terms used throughout the agreement

4. Reaffirmation Terms: Specific debt amount being reaffirmed and payment terms

5. Statutory Disclosures: Required disclosures under Section 524(k)

6. Rights and Consequences: Statement of debtor's rights and consequences of reaffirmation

7. Signatures: Execution blocks including attorney certification if required

What sections are optional to include in a Reaffirmation Settlement Agreement?

1. Security Interest: Details of collateral if agreement involves secured debt

2. Insurance Requirements: Insurance obligations for secured property

3. Hardship Statement: Debtor's statement regarding ability to pay when presumption of undue hardship exists

What schedules should be included in a Reaffirmation Settlement Agreement?

1. Schedule A - Payment Schedule: Detailed payment terms and amounts

2. Schedule B - Income and Expense Statement: Debtor's financial information supporting ability to pay

3. Schedule C - Original Loan Documentation: Copies of original debt agreements being reaffirmed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Industries

U.S. Bankruptcy Code Section 524(c): Primary federal legislation governing reaffirmation agreements in bankruptcy cases, including core requirements for validity

U.S. Bankruptcy Code Section 524(k): Specifies mandatory disclosures and forms that must be included in reaffirmation agreements

U.S. Bankruptcy Code Section 523: Details exceptions to discharge that may affect the reaffirmation agreement's scope and validity

Fair Debt Collection Practices Act (FDCPA): Federal law governing debt collection practices and communications with debtors during the reaffirmation process

State Contract Laws: State-specific requirements for contract formation, statute of frauds, and consideration that affect the agreement's enforceability

Consumer Protection Laws: Federal and state regulations protecting consumer rights in financial transactions and agreements

Truth in Lending Act: Federal law requiring disclosure of credit terms and costs, which may apply to reaffirmed debts

Local Bankruptcy Court Rules: Specific procedural requirements and filing deadlines set by local bankruptcy courts for reaffirmation agreements

Statute of Limitations: State-specific time limits for debt collection and enforcement of reaffirmation agreements

Teams

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