Local Rule 4008-1: Reaffirmation Agreements

Local Rule 4008-1 Reaffirmation Agreements

(a) Official Forms. Parties should use Official Bankruptcy Forms B 2400A or B 2400A/B ALT to file reaffirmation agreements pursuant to 11 U.S.C. § 524(c). If the contents of a nonstandard form do not comply with the official forms, the court will set the matter on for hearing.

(b) Electronic Filing of Reaffirmation Agreements. In all cases filed under all chapters of the Bankruptcy Code, reaffirmation agreements shall be filed by electronic means directly with the Clerk of Court according to the guidelines established and published by the Clerk. The filing of a reaffirmation agreement by electronic means shall constitute the filing claimant's approved signature by law, and the provisions of 18 U.S.C. § 152(4) shall apply to the filing of a reaffirmation agreement under this procedure. The filing of a reaffirmation agreement by electronic means shall also constitute the entry of the reaffirmation agreement pursuant to Federal Rule of Bankruptcy Procedure 5003. Any paper "hard copy" reaffirmation agreement filed with the Clerk that has subsequently been scanned and reduced to an electronic image may be destroyed at any time thereafter.

(c) Pro Se Debtors. All reaffirmation agreements involving pro se debtors will be set for hearing. The debtor must appear at the hearing.

(d) Debtors Represented by Counsel. Because reaffirmation agreements are routine in Chapter 7 cases, the court expects the debtor's counsel to represent their clients regarding reaffirmation agreements, completing the necessary paperwork, and, if the attorney can do so in good conscience and within the bounds of Federal Rule of Bankruptcy Procedure 9011, making the attorney certifications required by 11 U.S.C. § 524(k)(5).

When a debtor is represented by counsel, the court may consider a proposed reaffirmation agreement on the pleadings and without a hearing, provided:

(1) The reaffirmation agreement has been completed in its entirety and meets the requirements of § 524(k);

(2) All necessary attorney certifications have been made pursuant to § 524(k)(5); and

(3) No presumption of undue hardship exists under § 524(m).

Subject to paragraph (e) below, in all other cases in which a debtor is represented by counsel, the court will conduct a hearing. Both the debtor and debtor's counsel are required to attend that hearing. Counsel for the debtor shall promptly submit an order to the court following the hearing on the reaffirmation agreement. The court will not await entry of the order on the reaffirmation agreement to issue the discharge and close the case.

(e) Hearings on Reaffirmation Agreements Where Presumption of Undue Hardship Arises. In cases where a debtor is represented by counsel, if a reaffirmation agreement results in a presumption of undue hardship pursuant to § 524(m)(1), the debtor may attempt to rebut the presumption by filing a statement in support of the reaffirmation agreement explaining how the debtor will make the required payments. If the debtor's statement in support does not sufficiently support approval of the agreement despite the presumption of undue hardship, the court will schedule a hearing.