Free - Mississippi

Reaffirmation Agreements
Southern District of Mississippi
December 7, 2007

Section 524
Section 524 was completely reworked by the 2005 amendments to require very detailed disclosures about the terms of any debt to be reaffirmed including how interest will be calculated. It also greatly expands the representations the Debtor must make to the court to show that the Debtor can afford the payments. If it appears that the Debtor's income will not support the payment, there is a presumption that the reaffirmation will result in an undue hardship and therefore must be reviewed by the court. The presumption may be overcome if the Debtor can explain to the court how he or she can afford the payments. The 2005 amendments made a substantial overhaul of the reaffirmation process by creating: 1. Additional disclosure procedures for debtors. 2. Certifications by debtors' attorneys. 3. Reviews by the court. Section 524(c) serves as a checklist for the process that parties must follow in order to have an enforceable reaffirmation agreement. These steps include: 1. Timely entering into an agreement (prior to the debtor's discharge). 2. The debtor received the disclosures. 3. The parties must file the agreement with the court. 4. If the debtor is represented by counsel during the course of negotiating the reaffirmation agreement, then the attorney must file a declaration (regarding the debtor's understanding of the agreement, as well as the agreement does not impose an undue hardship on the debtor). 5. If the debtor is NOT represented by counsel, the court must review (either pro se debtor case or debtor pro se on reaffirmation). The Reaffirmation Form (Form B240A) was revised and reformatted effective January 1, 2007. * Page 1 was reformatted * Part D was reformatted * Form 240B, the proposed Order on Reaffirmation Agreement, was revised to include several alternative provisions. New statistical data is required to be collected by 28 U.S.C. §159, effective October 20, 2006. 1. The number of cases in which a reaffirmation agreement was filed. 2. The total number of reaffirmation agreements filed. 3. The number of cases in which the debtor was pro se. 4. The number of reaffirmations approved by the court.

Reaffirmation Agreements
Southern District of Mississippi (12/7/07)
All Pro Se Reaffirmations will require a hearing ­ discharge cannot be entered until court either approves or disapproves all Pro Se Reaffirmation Agreements. Presumption of Undue Hardship prevents discharge until the court approves/denies the reaffirmation agreement. Part Part Part Part Part ABCDEDisclosure Statement, Instructions and Notice to Debtor (Pages 1-5) Reaffirmation Agreement (Page 6) Certification by Debtor's Attorney (Page 7) Debtor's Statement in Support of Reaffirmation (Page 8) M otion for Court Approval (Page 9)

Reaffirm ation Agreem ent is Filed Pro Se Debtor must file M otion for Approval of Reaffirmation Note: If Debtor is Not represented by Counsel, Parts A, B, D and E must be filed. Debtor represented by counsel Debtor's counsel must sign Certification and include it with Reaffirmation Agreement Note: If Debtor is represented by counsel, Parts A, B, C and D must be filed.

Court Action Real Estate debt, no further action Any other debt, will be set for hearing

Real Estate debt, no further action If Part A or B is incomplete, no action by court If Part C is not signed by debtor's attorney (debtor is pro se on reaffirmation), will be set for hearing. i Note: in case of pro se debtor on reaffirmation, Motion for Court Approval "Part E" should be filed; however, the Reaffirmation Agreement will be set for hearing with or without Motion. If Part C Certification is missing, will be set for hearing. If Part C is incomplete, will be set for hearing If Part D is incomplete, will be set for hearing. If Part E is signed and filed, will be set for hearing. i Note: Regardless of whether attorney has signed Part C, if a signed Motion for Court Approval is filed, will set for hearing. Court will not try to guess why Motion was filed. i Bottomline: If a signed Motion is submitted, court will set for hearing.

Creditor files Reaffirmation Agreement

Real Estate debt, no further action If Part A or B is incomplete, no action by court If Part C is incomplete, will be set for hearing. If Part D is incomplete, will be set for hearing. If Part E signed and filed, will be set for hearing.

Presumption of Undue Hardship Exists

W ill be set for hearing No Discharge until Court Approves or Disapproves the Reaffirmation Agreement Under Undue Hardship