An Explanation of the Reaffirmation Process

When you file a Chapter 7 bankruptcy case, you will indicate in your petition whether or not you want to retain and reaffirm or surrender on your secured debts.  When you decide to retain and reaffirm, the creditor must agree to offer you a reaffirmation agreement.  Sometimes the agreement will be provided to your attorney's office but if it's not, it will be the client's responsibility to receive the reaffirmation agreement from the particular creditor.  It is not a requirement to have the reaffirmation agreement signed even if it indicates so on the petition.  However, without the reaffirmation agreement, the debt will be considered discharged on your credit report once you receive a discharge in the Chapter 7 case. 

Once the reaffirmation agreement is signed, it will be sent to the Creditor.  The Creditor will then file the agreement with the Court.  However, there are instances when the Creditor does not file the agreement before the Chapter 7 case receives a discharge.  In Georgia, as long as the reaffirmation agreement was "made" before the discharge, the attorney can file a Motion to Reopen and the Court will grant the Motion in order for the reaffirmation agreement to be filed.  However, if it is determined that the reaffirmation agreement was NOT "made" before the discharge, then the Court will NOT allow the case to be reopened, thus, that specific debt will be discharged under bankruptcy.  (In re Roselyn Toweh, In re Arnold Eger).  The Court will find a reaffirmation agreement to be "made" before the discharge if the agreement was signed, or if there was an oral agreement between the Debtor and the Creditor that the debt will be retained and reaffirmed prior to entry of discharge.