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Reaffirmation Agreements

Description: Reaffirmation Agreements Quiz
Number of Questions: 15
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Tags: bankruptcy law reaffirmation agreements
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What is a reaffirmation agreement?

  1. An agreement between a debtor and a creditor to reaffirm a debt that was discharged in bankruptcy.

  2. An agreement between a debtor and a creditor to modify the terms of a debt that was discharged in bankruptcy.

  3. An agreement between a debtor and a creditor to pay off a debt that was discharged in bankruptcy.

  4. An agreement between a debtor and a creditor to extend the time period for repayment of a debt that was discharged in bankruptcy.

Show answer
Correct Option: A
Explanation:

A reaffirmation agreement is a legal contract that allows a debtor to reaffirm a debt that was discharged in bankruptcy. This means that the debtor agrees to pay the debt even though it was discharged in bankruptcy.

What are the benefits of reaffirming a debt?

  1. It can help the debtor to rebuild their credit.

  2. It can allow the debtor to keep their property.

  3. It can help the debtor to get a loan in the future.

  4. All of the above.

Show answer
Correct Option: D
Explanation:

Reaffirming a debt can help the debtor to rebuild their credit, keep their property, and get a loan in the future.

What are the risks of reaffirming a debt?

  1. The debtor may have to pay more than they would have if they had not reaffirmed the debt.

  2. The debtor may not be able to get a discharge of the debt in the future.

  3. The debtor may be harassed by the creditor.

  4. All of the above.

Show answer
Correct Option: D
Explanation:

Reaffirming a debt can increase the amount of debt that the debtor owes, prevent the debtor from getting a discharge of the debt in the future, and subject the debtor to harassment by the creditor.

What are the requirements for a valid reaffirmation agreement?

  1. The agreement must be in writing.

  2. The agreement must be signed by the debtor and the creditor.

  3. The agreement must be filed with the bankruptcy court.

  4. All of the above.

Show answer
Correct Option: D
Explanation:

A valid reaffirmation agreement must be in writing, signed by the debtor and the creditor, and filed with the bankruptcy court.

When can a reaffirmation agreement be rescinded?

  1. Within 7 days of the date the agreement was signed.

  2. Within 60 days of the date the agreement was filed with the bankruptcy court.

  3. Within 1 year of the date the agreement was signed.

  4. Never.

Show answer
Correct Option: B
Explanation:

A reaffirmation agreement can be rescinded within 60 days of the date it was filed with the bankruptcy court.

What is the effect of rescinding a reaffirmation agreement?

  1. The debt is discharged.

  2. The debtor is released from all liability for the debt.

  3. The creditor is barred from collecting the debt.

  4. All of the above.

Show answer
Correct Option: A
Explanation:

Rescinding a reaffirmation agreement discharges the debt.

What are some of the factors that a bankruptcy court will consider when deciding whether to approve a reaffirmation agreement?

  1. The debtor's ability to pay the debt.

  2. The creditor's need for the reaffirmation.

  3. The impact of the reaffirmation on the debtor's other creditors.

  4. All of the above.

Show answer
Correct Option: D
Explanation:

A bankruptcy court will consider all of these factors when deciding whether to approve a reaffirmation agreement.

What are some of the alternatives to reaffirmation agreements?

  1. Redemption.

  2. Assumption.

  3. Surrender.

  4. All of the above.

Show answer
Correct Option: D
Explanation:

Redemption, assumption, and surrender are all alternatives to reaffirmation agreements.

What is redemption?

  1. The debtor pays the creditor the value of the collateral.

  2. The debtor assumes the debt and agrees to pay it off.

  3. The debtor surrenders the collateral to the creditor.

  4. None of the above.

Show answer
Correct Option: A
Explanation:

Redemption is when the debtor pays the creditor the value of the collateral.

What is assumption?

  1. The debtor pays the creditor the value of the collateral.

  2. The debtor assumes the debt and agrees to pay it off.

  3. The debtor surrenders the collateral to the creditor.

  4. None of the above.

Show answer
Correct Option: B
Explanation:

Assumption is when the debtor assumes the debt and agrees to pay it off.

What is surrender?

  1. The debtor pays the creditor the value of the collateral.

  2. The debtor assumes the debt and agrees to pay it off.

  3. The debtor surrenders the collateral to the creditor.

  4. None of the above.

Show answer
Correct Option: C
Explanation:

Surrender is when the debtor surrenders the collateral to the creditor.

Which of the following is not a benefit of reaffirming a debt?

  1. It can help the debtor to rebuild their credit.

  2. It can allow the debtor to keep their property.

  3. It can help the debtor to get a loan in the future.

  4. It can reduce the amount of debt that the debtor owes.

Show answer
Correct Option: D
Explanation:

Reaffirming a debt does not reduce the amount of debt that the debtor owes.

Which of the following is not a risk of reaffirming a debt?

  1. The debtor may have to pay more than they would have if they had not reaffirmed the debt.

  2. The debtor may not be able to get a discharge of the debt in the future.

  3. The debtor may be harassed by the creditor.

  4. It can help the debtor to rebuild their credit.

Show answer
Correct Option: D
Explanation:

Reaffirming a debt can help the debtor to rebuild their credit.

Which of the following is not a requirement for a valid reaffirmation agreement?

  1. The agreement must be in writing.

  2. The agreement must be signed by the debtor and the creditor.

  3. The agreement must be filed with the bankruptcy court.

  4. The agreement must be approved by the bankruptcy court.

Show answer
Correct Option: D
Explanation:

A reaffirmation agreement does not need to be approved by the bankruptcy court.

Which of the following is not a factor that a bankruptcy court will consider when deciding whether to approve a reaffirmation agreement?

  1. The debtor's ability to pay the debt.

  2. The creditor's need for the reaffirmation.

  3. The impact of the reaffirmation on the debtor's other creditors.

  4. The debtor's age.

Show answer
Correct Option: D
Explanation:

A bankruptcy court will not consider the debtor's age when deciding whether to approve a reaffirmation agreement.

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