PUBLIC LAW 109–8—APR. 20, 2005
119 STAT. 47
law. Only agree to reaffirm a debt if it is in your best interest. Be sure you can afford the payments you agree to make. ‘‘ ‘What if your creditor has a security interest or lien? Your bankruptcy discharge does not eliminate any lien on your property. A ‘‘lien’’ is often referred to as a security interest, deed of trust, mortgage or security deed. Even if you do not reaffirm and your personal liability on the debt is discharged, because of the lien your creditor may still have the right to take the security property if you do not pay the debt or default on it. If the lien is on an item of personal property that is exempt under your State’s law or that the trustee has abandoned, you may be able to redeem the item rather than reaffirm the debt. To redeem, you make a single payment to the creditor equal to the current value of the security property, as agreed by the parties or determined by the court.’. ‘‘(ii) In the case of a reaffirmation under subsection (m)(2), numbered paragraph 6 in the disclosures required by clause (i) of this subparagraph shall read as follows: ‘‘ ‘6. If you were represented by an attorney during the negotiation of your reaffirmation agreement, your reaffirmation agreement becomes effective upon filing with the court.’. ‘‘(4) The form of such agreement required under this paragraph shall consist of the following: ‘‘ ‘Part B: Reaffirmation Agreement. I (we) agree to reaffirm the debts arising under the credit agreement described below. ‘‘ ‘Brief description of credit agreement: ‘‘ ‘Description of any changes to the credit agreement made as part of this reaffirmation agreement: ‘‘ ‘Signature: Date: ‘‘ ‘Borrower: ‘‘ ‘Co-borrower, if also reaffirming these debts: ‘‘ ‘Accepted by creditor: ‘‘ ‘Date of creditor acceptance:’. ‘‘(5) The declaration shall consist of the following: ‘‘(A) The following certification: ‘‘ ‘Part C: Certification by Debtor’s Attorney (If Any). ‘‘ ‘I hereby certify that (1) this agreement represents a fully informed and voluntary agreement by the debtor; (2) this agreement does not impose an undue hardship on the debtor or any dependent of the debtor; and (3) I have fully advised the debtor of the legal effect and consequences of this agreement and any default under this agreement. ‘‘ ‘Signature of Debtor’s Attorney: Date:’. ‘‘(B) If a presumption of undue hardship has been established with respect to such agreement, such certification shall state that in the opinion of the attorney, the debtor is able to make the payment. ‘‘(C) In the case of a reaffirmation agreement under subsection (m)(2), subparagraph (B) is not applicable. ‘‘(6)(A) The statement in support of such agreement, which the debtor shall sign and date prior to filing with the court, shall consist of the following: ‘‘ ‘Part D: Debtor’s Statement in Support of Reaffirmation Agreement. ‘‘ ‘1. I believe this reaffirmation agreement will not impose an undue hardship on my dependents or me. I can afford to make the payments on the reaffirmed debt because my monthly income
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