9. Reaffirmations

Section 524 now contains extensive new disclosures, detailing the rights that the debtor has and specifying the amount of debt reaffirmed, rates of interest, when payments will begin, filing requirements with the court, the right to rescind, a certification that the agreement does not impose an undue hardship on the debtor. Such agreements are presumed to create a hardship if the debtor’s expenses including the reaffirmed debt exceed income. If there is such a presumption, the debtor must explain to the court why it can, nevertheless still afford to satisfy the debt (but no such requirement applies if the reaffirmed debt is owed to a credit union. The disclosure requirements are satisfies if “given in good faith.” A creditor can accept payments under a non-compliant reaffirmation as long as the creditor “believes in good faith” that the agreement is effective.