Motion to Set Aside Discharge Order

• A reaffirmation agreement is enforceable when it is filed and approved before the discharged is granted. When the reaffirmation agreement isn’t submitted to the court before you receive the discharge, you can file a motion to set aside the discharge. Request the bankruptcy judge temporarily remove the discharge from the case so that you can provide the reaffirmation agreement to the court. State the intent to keep making payments for the debt and list the circumstances that led to the reaffirmation agreement not being submitted. File the signed reaffirmation agreement with the court if the judge grants the motion. The bankruptcy judge will reissue the discharge after the reaffirmation agreement has been filed and reviewed.
  
  

Property Gets Repossessed

• Failure to file a reaffirmation agreement means the lender can repossess the property associated with the debt. For instance, if there is a lien on your car, the lender has the right to repossess the property if you don’t sign the reaffirmation agreement and agree to continue making payments. When the debt isn't reaffirmed you can lose the car, but you won't have to make any more payments for that debt. The rest of the loan will be discharged in the bankruptcy. If the reaffirmation agreement was submitted to the court and you fall behind on the car payments, the lender can take the car and you will remain liable for paying off the remaining balance of the loan.
  
  

Keep Making Payments Without Reaffirmation Agreement

• In some jurisdictions, filing a reaffirmation agreement isn’t required. You are permitted to keep the property as long as you keep making the loan payments on time to the lender. If you become delinquent with the payments, the lender can repossess the property but you will not be held responsible for paying off the balance of the loan. It is considered discharged in the bankruptcy, along with your other debts.
  
  

Discuss Options with Attorney

• Talk to your bankruptcy attorney to decide if it is in your best interests to reaffirm a debt. If you want to sign the reaffirmation agreement, the attorney can submit the appropriate documents to the court in order to get the reaffirmation agreement filed. Your attorney can advise you of all the possible repercussions related to filing or not filing the reaffirmation agreement, as they pertain to your particular case.