Affirmation Agreement

b) State­ment of sup­port for the con­fir­ma­tion agree­ment. The state­ment of the debtor cov­ered in Sec­tion 524 (k) (6) (A) of the code is accom­pa­nied by a list of total rev­enues and expens­es indi­cat­ed in Cal­en­dars I and J. Where there is a dif­fer­ence between the total rev­enues and expens­es indi­cat­ed in these sched­ules and the report­ing required under sec­tion 524(6) (A), the report­ing required in this sub­di­vi­sion pro­vides an expla­na­tion of the dif­fer­ence. From: Con­fir­ma­tion of the con­tract in A Dic­tio­nary of Busi­ness and Man­age­ment The Jan­u­ary 2007 affir­ma­tion agree­ment is divid­ed into dif­fer­ent parts: What is the main draw­back of not sign­ing a con­fir­ma­tion agree­ment? Con­fir­ma­tion pre­vent­ed Jean from clos­ing his house. How­ev­er, if the lender is unable to make the mort­gage pay­ments under the new con­di­tions, the lender will take pos­ses­sion of its home and ini­ti­ate fore­clo­sure pro­ceed­ings. Cer­tain­ly, under bank­rupt­cy laws, there is no need to enter into con­fir­ma­tion agree­ments for each guar­an­teed debt that the debtor will con­tin­ue to pay. Since the insis­tence on the con­fir­ma­tion agree­ment is often a lost game for cred­i­tors, many cred­i­tors will sim­ply allow the debtor to con­tin­ue to make nor­mal pay­ments and retain guar­an­tees. This rule is amend­ed to set a time lim­it for the sub­mis­sion of con­fir­ma­tion agree­ments. The code con­tains a num­ber of pre­con­di­tions for the applic­a­bil­i­ty of affir­ma­tion agree­ments. These require­ments include, in point 524 (k) (6) (A), that any con­fir­ma­tion agree­ment must be accom­pa­nied by a state­ment indi­cat­ing the debtor‘s abil­i­ty to make the pay­ments required in the agree­ment. In the event that this state­ment reflects insuf­fi­cient income to allow the pay­ment of the con­firmed debt, item 524, let­ter m), pro­vides for a pre­sump­tion of unjus­ti­fied sever­i­ty, so that the court may refuse the con­fir­ma­tion agree­ment, but only after a hear­ing that took place before the dis­charge was opened.

Rule 4004 © (1) (K) takes this pro­vi­sion into account by delay­ing the intro­duc­tion of dis­charge in the event of a pre­sump­tion of unrea­son­able harsh­ness. How­ev­er, for this rule to be effec­tive, the con­fir­ma­tion agree­ment itself must be pre­sent­ed before the dis­charge is opened. Under Rule 4004, point c) (1), dis­charge must be issued imme­di­ate­ly after the expiry of the peri­od for fil­ing an appeal against dis­charge, which is set in accor­dance with Rule 4004, point a), six­ty days after the first date of the cred­i­tors‘ meet­ing. This date is there­fore set as the dead­line for the sub­mis­sion of a con­fir­ma­tion agree­ment. The asser­tion is a kind of agree­ment that a debtor makes with a lender to repay some or all of the debt, while it has been the sub­ject of bank­rupt­cy pro­ceed­ings. When a per­son goes bank­rupt, they do so to be dis­charged from a debt that they can­not pay. Con­fir­ma­tion is not always pos­si­ble for judi­cial admin­is­tra­tors. The Bank­rupt­cy Act requires the debtor‘s lawyer to file a state­ment in court con­firm­ing that his client can repay the debt with­out incur­ring oth­er per­son­al finan­cial dam­ages. To reaf­firm a debt, a per­son must gen­er­al­ly be in place when mak­ing that par­tic­u­lar loan. Then the lawyer will make sure that you do not sign a con­fir­ma­tion agree­ment, unless they are absolute­ly nec­es­sary. Part C — Cer­ti­fi­ca­tion by the debtor‘s lawyer — Not applic­a­ble to a debtor by Part D — State­ment of the debtor in sup­port of the confirmation.

Sign­ing of the nec­es­sary debtor! In this sec­tion, the Court of Jus­tice states that the debtor can make the pay­ments with­out any undue severity.