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Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31692
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I am a creditor in a bankruptcy case. If the debtor enters

Resolved Question:

I am a creditor in a bankruptcy case. If the debtor enters into a reaffirmation agreement with me can I add a clause that says the entire debt will become due if a payment is missed?

For example, suppose the debt is $10,000 and I've agreed to settle it for $1,000.00
I want payments of $100 per month in the reaffirmation agreement. If one payment is 30 days late I want to say the settlement is void and the full $10,000 is due. Am I allowed to do this? And does such a reaffirmation agreement void the bankruptcy protection? I assume the other debts would discharge and mine would be excluded.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 5 years ago.

Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney here to assist you.


The reaffirmation agreement should state the total amount the borrower is going to pay you under the new agreement. There can't be an accelleration penalty that requires a larger repayment in the event of a default. Instead, the reaffirmation must state the amount of the debt to be repaid and how much is to be repaid per month. If the debtor defaults on the agreement, the creditor has a right to sue under the new agreement.

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