How Do I
Cancel a
Reaffirmation
Agreement?
Note: This instructional packet is not legal advice. You should
not use this packet “as-is.” Instead, you should modify this
packet after you carefully consider the facts in your case. If you
need specific legal advice, you should consult an attorney.
Updated March 11, 2016
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What Is a Reaffirmation Agreement?
When you declare bankruptcy, some or all of your debts are discharged and you are no
longer legally responsible for paying them back.
A reaffirmation agreement is a new contract between you and the creditor where you
agree to pay a debt voluntarily that would have been discharged in your bankruptcy
case.
When you reaffirm a debt, you agree to be personally liable for paying it back.
* A reaffirmation agreement is completely voluntary *
Examples of obligations that creditors may ask you to reaffirm include a:
• car loan; or
• home loan.
If you want to reaffirm your car, a judge may need to approve the reaffirmation
agreement before it goes into effect.
However, if you reaffirm a home loan, it may be effective without a court hearing or a
judge’s approval.
Can I Change My Mind and Cancel the Agreement?
Yes.
You can cancel (or “rescind”) your reaffirmation agreement, even if a judge has
already approved it.
NOTE: WE STRONGLY RECOMMEND THAT YOU SPEAK WITH AN
ATTORNEY TO ADVISE YOU ABOUT THE CONSEQUENCES OF
CANCELLING A REAFFIRMATION AGREEMENT IN YOUR CASE.
But you have a very limited time to cancel the reaffirmation agreement. The deadline
to cancel a reaffirmation agreement is the later of these two dates:
• 60 days after the date the agreement is filed with the Court; or
• the date the Bankruptcy Court issues a discharge in your case.
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If the judge approved a reaffirmation agreement on your car loan, and you are
considering rescinding the agreement, you should talk to an attorney. The creditor
may repossess your car if you rescind the agreement for the car loan.
If you have filed a reaffirmation agreement on your home loan, you can rescind your
reaffirmation agreement, even if the judge states that he or she does not have the
authority to approve or deny the agreement.
Please note that the reaffirmation agreement on a home loan may be still binding
simply by you signing the agreement, even if the judge states that he or she does not
have the authority to approve the agreement.
It is important that you consult an attorney as soon as possible about whether to
rescind this agreement, and to find out what effect it may have on a pending loan
modification.
What Information Do I Need to
Cancel My Reaffirmation Agreement?
*
1. If you want to cancel your reaffirmation agreement, it is a good idea to gather the
following information:
• What date was the reaffirmation agreement filed with the Court?
• What is the name and mailing address for the creditor (or creditor’s
attorney) listed on the reaffirmation agreement filed with the Court?
• Has the Court issued a discharge in the case? If so, when?
If you don’t have this information, you can obtain it by contacting the Bankruptcy
Court at (855) 460-9641, or via online chat at www.cacb.uscourts.gov
.
2. Remember that the deadline to cancel the agreement is either the date of
discharge, or 60 days after the reaffirmation agreement was filed with the Court,
whichever date is later. If both dates have passed, you should contact an
attorney for further assistance.
* These instructions are only for California bankruptcy cases filed in Los Angeles, Riverside, Santa Ana,
Santa Barbara, or Woodland Hills. Consult your local Bankruptcy Court for cases filed elsewhere.
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3. To cancel a reaffirmation agreement, you must notify the creditor. It is a good
idea to notify the creditor in writing via certified mail with a return receipt
postcard so you have proof that you have rescinded the agreement.
4. Also, it is a good idea for you to file a notification of this cancellation with the
Bankruptcy Court, so there is a record on your case docket.
NOTE: Sample versions and fill-in-the-blank versions of both the rescission letter and
notice of rescission are included in this packet.
What Steps Do I Take to Cancel
My Reaffirmation Agreement?
After you have gathered the information indicated above, you can take the following
steps to cancel your reaffirmation agreement:
1. Complete and sign the blank version of the REAFFIRMATION RESCISSION
LETTER, based on the sample version in this packet, and make one (1) copy
for your records.
2. Send the original REAFFIRMATION RESCISSION LETTER to the creditor (or
creditor’s attorney) via certified mail with a green return receipt postcard.
Make one (1) copy of the certified mail receipt for your records.
3. When you receive the green return receipt postcard in the mail (which
confirms the creditor received the Reaffirmation Rescission Letter) make one
(1) copy of each side of the postcard.
4. Complete and sign the blank version of the Notice of Rescission of
Reaffirmation Agreement, based on the sample in this packet. Make one (1)
copy for your records.
5. Assemble a NOTICE OF RESCISSION OF REAFFIRMATION PACKET
containing the following information:
• Completed and signed Notice of Rescission of Reaffirmation
Agreement;
• Completed and signed copy of the Reaffirmation Rescission Letter that
you send to the creditor;
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• Copy of both sides of the green return receipt postcard you received
after the creditor received the Reaffirmation Rescission Letter; and
• Copy of the stamped certified mail receipt you received when you
mailed the Reaffirmation Rescission letter.
6. Make one (1) copy of the entire NOTICE OF RESCISSION OF
REAFFIRMATION PACKET. This will be YOUR COPY.
7. Paper-clip (don’t staple) the NOTICE OF RESCISSION OF REAFFIRMATION
PACKET, and staple YOUR COPY.
8. Take both packets to the same Bankruptcy Court filing window where you
originally filed your bankruptcy case.
9. Give both packets to the clerk. The clerk will:
• Stamp both packets
• Keep the NOTICE OF RESCISSION OF REAFFIRMATION PACKET
• Give you back YOUR COPY.
10. Keep YOUR COPY for your records. Your stamped copy is the best proof that
you cancelled the reaffirmation agreement.
11. If you need assistance with this process, you can visit a Bankruptcy Self-Help
Center. To find the location of the Self-Help Center closest to you, contact the
Bankruptcy Court at (855) 460-9641, or via online chat at
www.cacb.uscourts.gov
.
SAMPLE
LETTER to
FILL OUT AND
mail TO
creditor
VIA CERTIFIED MAIL WITH RETURN RECEIPT
(Today’s month, day, year)
(Name of creditor or creditor’s attorney)
(Creditor street address)
(Creditor city, state , zip code)
Re: (Your name)
(Name of joint debtor, if any)
Case Number: (Your bankruptcy case number)
To whom it may concern:
A reaffirmation agreement was filed between (your name and name
of joint debtor, if any), the debtor(s) in the above referenced
bankruptcy case, and (name of creditor whose debt was
reaffirmed).
The agreement was for (describe the property in the original
reaffirmation agreement that you want to cancel, such as a
home or car) in the amount of (amount that was reaffirmed).
Debtor(s) (your name and name of joint debtor, if any) hereby
rescind the above-referenced reaffirmation agreement.
(Your signature)
(Your name)
(Signature of joint debtor, if any)
(Name of joint debtor, if any)
BLANK
LETTER to
FILL OUT AND
mail TO
creditor
VIA CERTIFIED MAIL WITH RETURN RECEIPT
Re:
Case Number:
To whom it may concern:
A reaffirmation agreement was filed between
, the Debtor(s) in the above-referenced
bankruptcy case, and .
The agreement was for ,
in the amount of .
Debtor(s)
hereby rescind the above-referenced reaffirmation agreement.
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Notice of Rescission of Reaffirmation Agreement
(Your name)
(Name of joint debtor, if any)
(Your address)
(Your city, state, zip)
(Your phone number)
Self-Represented Debtor(s)
UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA – (NAME OF DIVISION) DIVISION
In re:
Case No.: (Your bankruptcy case #)
Chapter:
7
NOTICE OF RESCISSION OF
REAFFIRMATION AGREEMENT
(YOUR NAME)
(NAME OF JOINT
DEBTOR, IF ANY),
Debtor(s).
Debtor(s) (your name and name of joint debtor, if any) hereby give(s) notice that on
(date you mailed the rescission letter), the debtor(s) mailed a letter rescinding the
reaffirmation agreement between (your name and name of joint debtor, if any) and
(name of creditor). Copies of the rescission letter, certified mail receipt, and return
receipt postcard are attached.
(Today’s month, day, year) (Your signature)
(Your name)
(Today’s month, day, year) (Signature of joint debtor, if any)
(Name of joint debtor, if any)
The “Division” is the court location where you filed your case:
• LOS ANGELES (if you filed in Downtown L.A.)
• NORTHERN (if you filed in Santa Barbara)
• RIVERSIDE
• SAN FERNANDO VALLEY (if you filed in Woodland Hills)
• SANTA ANA
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Notice of Rescission of Reaffirmation Agreement
Self-Represented Debtor(s)
UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA – DIVISION
In re:
Case No:
Chapter:
7
NOTICE OF RESCISSION OF
REAFFIRMATION AGREEMENT
,
Debtor(s).
Debtor(s) hereby give(s) notice that on
, the Debtor(s) mailed a letter rescinding the reaffirmation
agreement between and
. Copies of the rescission letter,
certified mail receipt, and return receipt postcard are attached herewith.
(INSERT
COPIES OF
RESCISSION
LETTER,
CERTIFIED
MAIL RECEIPT,
AND RETURN
RECEIPT
POSTCARD)
