Court Motion to Approve Reaffirmation Agreement in Bankruptcy

Understanding the Form 2400B: Motion for Approval of Reaffirmation Agreement

The Form 2400B is an official document used in the United States Bankruptcy Court system. It serves as a formal motion filed by debtors seeking court approval for a reaffirmation agreement. A reaffirmation agreement is a legal contract where a debtor agrees to remain responsible for a specific debt even after bankruptcy, typically to ensure continued access to credit or to keep collateral such as a car or home. This article provides guidance on who should complete this form, how to fill it out correctly, and the key considerations involved in the reaffirmation process.

Who Needs to Fill Out Form 2400B?

This form is primarily intended for debtors who wish to reaffirm a particular debt during or after their bankruptcy case. It is especially relevant when:

• The debtor has entered into a reaffirmation agreement with a creditor.
• The debtor believes that reaffirming the debt is in their best interest, often to maintain essential credit or collateral.
• The debtor is not represented by an attorney during the reaffirmation negotiations, as indicated in the form.

It is important to note that the debtor must file this motion with the bankruptcy court and obtain approval before reaffirming the debt. This process ensures the reaffirmation agreement complies with applicable bankruptcy laws and that the debtor's rights are protected.

How to Complete the Form 2400B

Basic Information

The top section of the form requires the debtor to fill in:

• The name of the bankruptcy district and court.
• The debtor’s full name and case number.
• The chapter under which the case is filed (e.g., Chapter 7, 13).

Declaration of Truth and Intent

The debtor must affirm that the information provided is true and correct. They must also declare whether they are represented by an attorney during negotiations:

• If not represented, the debtor checks the box indicating they are self-represented.
• The debtor must state their belief that reaffirming the debt is in their best interest based on their financial situation.

Reasons for Reaffirmation

In the statement, the debtor can include additional reasons why reaffirming the debt benefits them. This section allows for personalized explanations that may influence the court’s decision.

Legal Provisions and Checkboxes

The form includes checkboxes for specific legal provisions under which the reaffirmation is being requested:

• 11 U.S.C. § 524(c)(6): Indicates the debtor was not represented by an attorney during negotiations.
• 11 U.S.C. § 524(m): Used when there is a presumption of undue hardship because the debtor’s monthly expenses exceed income, as explained in the supporting reaffirmation documents.

Filing and Supporting Documents

When submitting Form 2400B, the debtor must also include the Statement in Support of Reaffirmation Agreement. This document provides detailed financial information, including income, expenses, and reasons for reaffirmation, and is critical for the court’s review.

Where and How to File

The completed form and supporting documents should be filed with the bankruptcy court handling the case. Filing methods may include electronic submission through the court’s Electronic Filing System (ECF) or physical delivery to the court clerk’s office, depending on local procedures.

Important Considerations and Common Errors

Before filing, debtors should ensure that:

• The reaffirmation agreement is voluntary and in their best interest.
• All sections of the form are completed accurately, especially the legal provisions checked.
• The supporting statement is thorough and truthful.

Common mistakes include failing to include the Statement of Support, incomplete or incorrect information, or not checking the appropriate legal provisions. These errors can delay court approval or result in rejection of the reaffirmation motion.

Conclusion

Form 2400B is a vital step in the reaffirmation process within bankruptcy proceedings. Proper completion and timely filing, along with the supporting documentation, help ensure that the court can review and approve the reaffirmation agreement in accordance with federal bankruptcy laws. Debtors should carefully consider whether reaffirmation aligns with their financial goals and seek legal advice if unsure about the implications.