Fillable Form 240a Reaffirmation Agreement: What You Need to Know
If you’re filing for bankruptcy, you may come across fillable Form 240a reaffirmation agreement. This form is used to reaffirm a debt that would otherwise be discharged in your bankruptcy. In this article, we’ll explain what a reaffirmation agreement is, why you may need one, and how to fill out Form 240a.
What Is a Reaffirmation Agreement?
When you file for bankruptcy, you’re asking the court to discharge your debts. However, some debts may not be dischargeable, or you may want to keep the property securing the debt. In these cases, you may need to sign a reaffirmation agreement.
A reaffirmation agreement is a contract between you and a creditor that says you’ll pay all or part of a debt that would otherwise be discharged in your bankruptcy. Essentially, you’re agreeing to continue making payments on the debt after your bankruptcy case is closed.
Why Would You Need a Reaffirmation Agreement?
You may need a reaffirmation agreement if you want to keep property securing a debt, such as a car or house. If you don’t sign a reaffirmation agreement, the creditor may be able to repossess or foreclose on the property.
Additionally, some creditors may require you to sign a reaffirmation agreement in order to continue doing business with you. For example, if you want to keep a credit card with a particular lender, they may require you to sign a reaffirmation agreement.
How to Fill Out Form 240a
Form 240a is the official form used for reaffirmation agreements in bankruptcy cases. Here’s a step-by-step guide on how to fill out the form:
1. Identify the case: Enter your name, case number, and the name of the court where your bankruptcy case was filed.
2. Identify the creditor: Enter the name and address of the creditor you’re reaffirming the debt with.
3. Describe the debt: Describe the debt you’re reaffirming, including the type of debt, the original balance, the current balance, and the interest rate.
4. Explain your ability to pay: You’ll need to explain how you’ll be able to make the payments on the reaffirmed debt. This includes describing your income, expenses, and other debts.
5. Sign and date the agreement: Both you and the creditor will need to sign and date the agreement.
Final Thoughts
If you’re filing for bankruptcy and need to reaffirm a debt, fillable Form 240a reaffirmation agreement can be a valuable tool. Just be sure to carefully consider whether reaffirming a debt is in your best interest before signing the agreement. If you have any questions about reaffirmation agreements or bankruptcy in general, it’s best to consult with a bankruptcy attorney.