Can a Reaffirmation Agreement Be Rescinded after Discharge

When you file for bankruptcy, it can be a difficult and emotional process. While it may seem like a fresh start, there are still some details that need to be worked out, such as reaffirmation agreements. A reaffirmation agreement is a contract that you make with a creditor, stating that you will continue to pay off a debt even after your bankruptcy case has been discharged.

However, what happens if you change your mind after the reaffirmation agreement has been signed and you no longer want to make the payments? Can a reaffirmation agreement be rescinded after discharge?

The answer is yes, it is possible to rescind a reaffirmation agreement after discharge, but it`s not an easy process. In order to do so, you must file a motion with the bankruptcy court to set aside the agreement. The court will then hold a hearing to determine whether or not the agreement should be rescinded.

There are several reasons why you might want to rescind a reaffirmation agreement. For example, if you were coerced or threatened into signing the agreement or if you discover that you can`t afford the payments. In some cases, the creditor may also be willing to release you from the agreement if they discover that the payments will not be feasible for you.

It`s important to note that if you are successful in rescinding the reaffirmation agreement, you will still owe the debt, but you won`t be required to make the payments under the terms of the agreement. Instead, the debt will return to its pre-bankruptcy status, and the creditor will have to take legal action if they wish to collect the debt.

In conclusion, while it is possible to rescind a reaffirmation agreement after discharge, it`s not a decision that should be taken lightly. It`s important to consult with an experienced bankruptcy attorney before making any decisions about reaffirmation agreements and to have a clear understanding of your options and obligations.

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