Local Rule RULE 4008-1: REAFFIRMATION

RULE 4008-1. REAFFIRMATION A.All Reaffirmation Agreements shall substantially conform to the Administrative Office of the U.S. Courts Director's Procedural Form 2400A Reaffirmation Documents or 2400C ALT Reaffirmation Agreement and Official Form 427, Cover Sheet for Reaffirmation Agreement, and shall include the following information:

1.Mark the appropriate presumption box.

2.Include the full legal name of the creditor.

3.If the creditor is a credit union, ensure that the proper box is checked. If the creditor is a credit union, as defined in section 19(b)(1)(A)(iv) of the Federal Reserve Act (codified at 12 U.S.C. § 461), and the debtor is represented by counsel, the Court does not have the authority to review the agreement for undue hardship. See 11 U.S.C.§ 524(m)(2).

4.Insert the amount agreed to be reaffirmed.

5.Include the interest rate in the "ANNUAL PERCENTAGE RATE" section of the Reaffirmation Agreement.

a)Use the appropriate subpart to report the APR for fixed rate credit agreements or variable rate credit agreements.

6.Include the description of the collateral that secures the debt to be reaffirmed. If the collateral is a vehicle, include the VIN. If the collateral is real estate, include the legal description or the address of the property. Include the original purchase price of the collateral or the original amount of the loan that is being reaffirmed.

7.Include the repayment schedule indicating the amount of the payment and terms prior to the date of the bankruptcy and after the Reaffirmation and describe how any "future payment amount" may be different, either explain the changes or attach a copy of the note or other documentation that will show the terms of the agreement including when and how the payments can change.

8.If the monthly payment amount is relatively fixed (i.e. mortgage payments including property tax and insurance escrow amounts), include the amount and include the total number of payments.

9.Briefly describe the credit agreement or attach a copy.

10.If any terms of the Reaffirmation Agreement have been renegotiated, describe the changes to the credit agreement.

11.All parties reaffirming the agreement should sign the Reaffirmation Agreement. If only one debtor has an obligation on the underlying debt, a joint debtor should not be a party to the agreement. The agreement must also be signed and dated by the creditor. If only one debtor is a party to the agreement, and the case is a joint case, there must be attached documentation to show that only one debtor has an obligation to the debt.

12.If the debtor is represented by counsel during the course of negotiating the agreement, counsel shall sign the Reaffirmation Agreement and check the box, if a presumption of undue hardship has been established and the debtor is able to make the required payment. The attorney's signature on the Reaffirmation Agreement indicates that the attorney represented the debtor during the course of negotiating the agreement.

13.The debtor's present income and expenses should be used when completing Part II. If the debtor has surrendered property or reduced expenses, subtract those changes from Schedule J expenses to arrive at present expenses. If the debtor listed the debt being reaffirmed as an expense on Schedule J, subtract that expense from Schedule J expenses to arrive at present expenses.

14.If the debtor's present income and expenses differ from those shown on Schedules I and J, it is essential to explain those changes. Without an explanation for any changes in income and expense, it is impossible for the Court to determine whether a presumption of undue hardship exists or to evaluate the impact of reaffirmation of the debt on the debtor. PROVIDING A DETAILED EXPLANATION OF HOW THE DEBTOR CAN AFFORD TO MAKE THE REQUIRED PAYMENTS IS THE SINGLE MOST IMPORTANT FACTOR DETERMINING IF UNDUE HARDSHIP EXISTS.

15.The debtor(s) must sign and date the statement in support of the reaffirmation agreement. This is a verification that the debtor has received information regarding rescission of the reaffirmation agreement.

B.All reaffirmation agreements must be filed no later than sixty (60) days after the first date set for the meeting of creditors to be enforceable. Any reaffirmation agreement filed after the 60th day is rendered unenforceable, unless a timely Motion to Delay the Discharge or Enlarge the Time to File a Reaffirmation Agreement is filed by the debtor, using the proper event code in order for the discharge to be delayed to allow a reaffirmation to be filed.

C.At any time before the Court enters a discharge or before the expiration of the sixty (60) day period that begins on the date the reaffirmation agreement is filed with the Court, whichever occurs later, the debtor has the right to rescind or cancel the reaffirmation agreement. The debtor shall notify the creditor in writing that the reaffirmation agreement is rescinded or canceled in order to cancel the agreement. The debtor may use Local Form 4008-1(C) for this creditor notification.

D.If a presumption of hardship is established, the debtor signs a motion for court approval, or the debtor is not represented by counsel during the course of the negotiating of the Reaffirmation Agreement, the debtor and any joint debtor that has an obligation on the Reaffirmation Agreement shall appear at a Reaffirmation hearing.