1. General. For home and vehicle loans, a debtor wishing to keep the property may be asked to sign a “confirmation agreement”. A “confirming arrangement” is a contract that waives insolvency relief in relation to a particular debt. A person who signs a stand-by agreement must continue to pay the contract and remains personally liable for the new debt if they do not pay. The new debt will not be affected by the declaration of insolvency and the relief from the bankruptcy will survive, as if the bankruptcy had never been declared. A debtor who does not confirm a debt cannot be sued in the event of a delay in the terms of the loan during or after the closure of the insolvency proceedings. Index Any agreement to be confirmed must be concluded before the opening of the landfill. If you are in the process of confirming a debt and you believe that it will not be filed before the expiry of the debt relief period, notify the agent`s office in writing to delay the introduction of the discharge until the new declaration is filed.

You have the right to revoke any confirmation at any time before your dismissal is seized or within 60 days of filing the stand-by agreement with the court, whichever happens later. To cancel a repeat agreement, you must send the creditor written notice that you are withdrawing your decision to reconfirm and revoke the contract. Send the original letter to the creditor and a copy to the administrator`s office to be part of your file. Complete the “Reaffirmation Agreement” form All reaffirmations must be submitted with the official form B27, the cover of the confirmation. The Confirming Arrangement (Official Form B240A) has been amended with effect from 1 December 2009. In order to allow sufficient time for applicants to implement the amendment to the form, the Tribunal will consult a six-month transition period during which the old version (1/07) or the new version (12/09) of the Stand-By Agreement may be filed. Note: With effect from April 1, 2010, the new “Reaffirmation Agreement” form becomes mandatory. All pro-se stand-by agreements that do not involve credit unions or real estate are automatically heard, whether there is a presumption of unreasonable harshness. If the confirming agreement is for real estate and/or a credit union, no further action is taken.

The Court of Justice is not required to approve a confirming agreement applicable to consumer debt secured by immovable property. This applies to all mortgages on your home or other debts that are secured by your home. In addition, the Court does not allow any confirmatory agreement between debtors and credit unions. They shall be submitted and shall be recorded in the minutes without consultation. The main reason for not signing a stand-by agreement is that it ensures that you won`t be able to get away from debt in the future. This is because if your Chapter 7 continues to be successfully discharged, you will be prohibited for 8 years from submitting another Chapter 7 case. If you are late at any time and the creditor repossess the property, you no longer have it and you are still responsible for the difference between your contractual amount and the value of the item. . .

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