I already signed my reaffirmation agreement, but I changed my mind. Can I cancel/rescind that agreement?

  • Thank goodness yes.

    According to the terms of the reaffirmation agreement, you can cancel or rescind the agreement “at any time before the bankruptcy court enters your discahrge, or during the 60-day period that begins on the date your Reaffirmation Agreement is filed with the court.”  This means that you can cancel the agreement.  Even if you’ve received your discharge and the case is closed out, you can still cancel the agreement up to 60 days after the agreement was filed with the court.

    How to cancel it is the best part.  The court approved agreement simply states that “you must notify the creditor that your Reaffirmation Agreement is rescinded (or canceled).”  This doesn’t say that you have to file anything with the court, you just have to let the creditor know.

    Theoretically, you could call the creditor to cancel the agreement, but this is very iffy, since it’s hard to prove, so we like to send a letter to the creditor officially rescinding the agreement.

    So, yes, if you change your mind, you can cancel it (for 60 days after it’s filed).  After the 60 days runs, you’re out of luck, and you are liable for the full reaffirmation agreement amount, even if you now have buyer’s remorse.

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  1. Pingback: Reaffirmation Agreements in Chapter 7 Bankruptcy | Indianapolis Bankruptcy Attorney

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