Revised Notice Regarding Reaffirmation Agreements

Release Date: 
Tuesday, June 26, 2007

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REVISED NOTICE REGARDING REAFFIRMATION AGREEMENTS

11 U.S.C. §524(c) and (k) clearly prescribe the language required in a reaffirmation
agreement. A reaffirmation agreement that does not comply with the requirements of these
subsections will be considered deficient and may be stricken.

The Court has made a determination regarding the actions that should be taken for the
various types of reaffirmation agreements:

Reaffirmation with Attorney Certification

 If the debtor’s attorney certifies that the agreement does not impose an undue hardship on
the debtor, neither a motion nor court action is required. The Court will not act on a motion
to approve the reaffirmation agreement in these circumstances.

 If the debtor’s attorney certifies that a presumption of undue hardship has been established
with respect to an agreement, a motion for approval of the reaffirmation agreement is
required pursuant to L.B.R. 4008-1. The motion shall be filed in the ECF event “Motion for
Approval of Reaffirmation Agreement - Presumption of Undue Hardship Applies.”
Otherwise, a notice of deficiency will be issued. Such a motion will be set for hearing.

Reaffirmation by a Debtor Not Represented by an Attorney in the Case

 If a reaffirmation agreement is filed and the debtor is not represented by an attorney in the
bankruptcy case, the debtor must sign a motion for approval of the reaffirmation agreement
pursuant to 11 U.S.C. §524(k)(7), attached as Part E. The reaffirmation agreement,
including Parts A-E shall be filed in ECF with the event “Reaffirmation Agreement by
Debtor Not Represented by An Attorney.” Otherwise, a notice of deficiency will be issued.
Such a motion will be set for hearing. The creditor may file the motion even though the
motion is signed by the debtor.

Reaffirmation by a Debtor Represented by an Attorney Who Did Not Negotiate the Agreement

 This circumstance will be addressed in the same way as a reaffirmation by a debtor not
represented by an attorney in the bankruptcy case.

In addition, if a reaffirmation agreement is signed by the debtor’s attorney but the attorney
has failed to certify whether or not the agreement will pose an undue hardship, a notice of deficiency
will be issued and the pleading may be stricken if not corrected.