Must the form be notarized?

Notarization requirements vary by state and lender; check local rules and the creditor’s policies. When real property is collateral, notarization or witness requirements are more likely; consult the state notary statute and the trustee if bankruptcies are involved.

Can this be signed electronically?

Yes, electronic signatures are generally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Exceptions include documents explicitly excluded by statute. Use reliable authentication and retention to meet the legal-validity test.

What if names do not match?

Mismatched names can delay acceptance and hinder enforcement. Correct names before execution or include a notarized name-clarifying affidavit; lenders often require exact matches for reporting and recording.

How long must the executed form be kept?

Retain executed reaffirmations for at least 3 years after termination and longer for tax- or property-related matters; HIPAA and SEC rules impose longer retention where applicable.

Does debtor consent need special disclosure?

For consumer-facing transactions, ESIGN requires a consumer disclosure about electronic records and consent processes (15 U.S.C. §7001(c)); confirm the disclosure is presented and consent captured before electronic signing.

How to correct a signed form?

Corrections generally require a rescission or amendment signed by all parties; consult counsel and, if applicable, the bankruptcy court or trustee before altering executed reaffirmations.

Electronic Signature
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Form 240A Reaffirmation Agreement

Form 240A Reaffirmation Agreement

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Form 240A - Reaffirmation Agreement

UNITED STATES BANKRUPTCY COURT

In re , Case No.

Debtor Chapter

REAFFIRMATION AGREEMENT

[Indicate all documents included in this filing by checking each applicable box.]

Part A: Disclosures, Instructions, and Notice to Debtor (pages 1 - 5)

Part B: Reaffirmation Agreement

Part C: Certification by Debtor’s Attorney

Part D: Debtor’s Statement in Support of Reaffirmation Agreement

Part E: Motion for Court Approval

[Note: Complete Part E only if debtor was not represented by an attorney during the course of negotiating this agreement. Note also: If you complete Part E, you must prepare and file Form 240B - Order on Reaffirmation Agreement.]

Name of Creditor:

[Check this box if] Creditor is a Credit Union as defined in §19(b)(1)(a)(iv) of the Federal Reserve Act

PART A: DISCLOSURE STATEMENT, INSTRUCTIONS AND NOTICE TO DEBTOR

1. DISCLOSURE STATEMENT

Before Agreeing to Reaffirm a Debt, Review These Important Disclosures:

SUMMARY OF REAFFIRMATION AGREEMENT

This Summary is made pursuant to the requirements of the Bankruptcy Code.

AMOUNT REAFFIRMED

The amount of debt you have agreed to reaffirm: $

The amount of debt you have agreed to reaffirm includes all fees and costs (if any) that have accrued as of the date of this disclosure. Your credit agreement may obligate you to pay additional amounts which may come due after the date of this disclosure. Consult your credit agreement.

Presumption of Undue Hardship

No Presumption of Undue Hardship

(Check box as directed in Part D: Debtor’s Statement in Support of Reaffirmation Agreement.)

ANNUAL PERCENTAGE RATE

[The annual percentage rate can be disclosed in different ways, depending on the type of debt.]

a. If the debt is an extension of “credit” under an “open end credit plan,” as those terms are defined in § 103 of the Truth in Lending Act, such as a credit card, the creditor may disclose the annual percentage rate shown in (i) below or, to the extent this rate is not readily available or not applicable, the simple interest rate shown in (ii) below, or both.

(i) The Annual Percentage Rate disclosed, or that would have been disclosed, to the debtor in the most recent periodic statement prior to entering into the reaffirmation agreement described in Part B below or, if no such periodic statement was given to the debtor during the prior six months, the annual percentage rate as it would have been so disclosed at the time of the disclosure statement: %.

--- And/Or ---

(ii) The simple interest rate applicable to the amount reaffirmed as of the date this disclosure statement is given to the debtor: %.

If different simple interest rates apply to different balances included in the amount reaffirmed, the amount of each balance and the rate applicable to it are:

$ @ %;

$ @ %.

b. If the debt is an extension of credit other than under than an open end credit plan, the creditor may disclose the annual percentage rate shown in (i) below, or, to the extent this rate is not readily available or not applicable, the simple interest rate shown in (ii) below, or both.

(i) The Annual Percentage Rate under §128(a)(4) of the Truth in Lending Act, as disclosed to the debtor in the most recent disclosure statement given to the debtor prior to entering into the reaffirmation agreement with respect to the debt or, if no such disclosure statement was given to the debtor, the annual percentage rate as it would have been so disclosed: %.

--- And/Or ---

(ii) The simple interest rate applicable to the amount reaffirmed as of the date this disclosure statement is given to the debtor: %.

If different simple interest rates apply to different balances included in the amount reaffirmed, the amount of each balance and the rate applicable to it are:

$ @ %;

$ @ %.

c. If the underlying debt transaction was disclosed as a variable rate transaction on the most recent disclosure given under the Truth in Lending Act:

The interest rate on your loan may be a variable interest rate which changes from time to time, so that the annual percentage rate disclosed here may be higher or lower.

d. If the reaffirmed debt is secured by a security interest or lien, which has not been waived or determined to be void by a final order of the court, the following items or types of items of the debtor’s goods or property remain subject to such security interest or lien in connection with the debt or debts being reaffirmed in the reaffirmation agreement described in Part B.

Item or Type of Item Original Purchase Price or Original Amount of Loan

Optional---At the election of the creditor, a repayment schedule using one or a combination of the following may be provided:

Repayment Schedule:

Your first payment in the amount of $ is due on , but the future payment amount may be different. Consult your reaffirmation agreement or credit agreement, as applicable.

— Or —

Your payment schedule will be: (number) payments in the amount of $ each, payable on the of each , unless altered later by mutual agreement in writing.

— Or —

A reasonably specific description of the debtor’s repayment obligations to the extent known by the creditor or creditor’s representative.

2. INSTRUCTIONS AND NOTICE TO DEBTOR

Reaffirming a debt is a serious financial decision. The law requires you to take certain steps to make sure the decision is in your best interest. If these steps are not completed, the reaffirmation agreement is not effective, even though you have signed it.

1. Read the disclosures in this Part A carefully. Consider the decision to reaffirm carefully. Then, if you want to reaffirm, sign the reaffirmation agreement in Part B (or you may use a separate agreement you and your creditor agree on).

2. Complete and sign Part D and be sure you can afford to make the payments you are agreeing to make and have received a copy of the disclosure statement and a completed and signed reaffirmation agreement.

3. If you were represented by an attorney during the negotiation of your reaffirmation agreement, the attorney must have signed the certification in Part C.

4. If you were not represented by an attorney during the negotiation of your reaffirmation agreement, you must have completed and signed Part E.

5. The original of this disclosure must be filed with the court by you or your creditor. If a separate reaffirmation agreement (other than the one in Part B) has been signed, it must be attached.

6. If the creditor is not a Credit Union and you were represented by an attorney during the negotiation of your reaffirmation agreement, your reaffirmation agreement becomes effective upon filing with the court unless the reaffirmation is presumed to be an undue hardship as explained in Part D. If the creditor is a Credit Union and you were represented by an attorney during the negotiation of your reaffirmation agreement, your reaffirmation agreement becomes effective upon filing with the court.

7. If you were not represented by an attorney during the negotiation of your reaffirmation agreement, it will not be effective unless the court approves it. The court will notify you and the creditor of the hearing on your reaffirmation agreement. You must attend this hearing in bankruptcy court where the judge will review your reaffirmation agreement. The bankruptcy court must approve your reaffirmation agreement as consistent with your best interests, except that no court approval is required if your reaffirmation agreement is for a consumer debt secured by a mortgage, deed of trust, security deed, or other lien on your real property, like your home.

YOUR RIGHT TO RESCIND (CANCEL) YOUR REAFFIRMATION AGREEMENT

You may rescind (cancel) your reaffirmation agreement at any time before the bankruptcy court enters a discharge order, or before the expiration of the 60-day period that begins on the date your reaffirmation agreement is filed with the court, whichever occurs later. To rescind (cancel) your reaffirmation agreement, you must notify the creditor that your reaffirmation agreement is rescinded (or canceled).

Frequently Asked Questions:

What are your obligations if you reaffirm the debt? A reaffirmed debt remains your personal legal obligation. It is not discharged in your bankruptcy case. That means that if you default on your reaffirmed debt after your bankruptcy case is over, your creditor may be able to take your property or your wages. Otherwise, your obligations will be determined by the reaffirmation agreement which may have changed the terms of the original agreement. For example, if you are reaffirming an open end credit agreement, the creditor may be permitted by that agreement or applicable law to change the terms of that agreement in the future under certain conditions.

Are you required to enter into a reaffirmation agreement by any law? No, you are not required to reaffirm a debt by any law. Only agree to reaffirm a debt if it is in your best interest. Be sure you can afford the payments you agree to make.

What if your creditor has a security interest or lien? Your bankruptcy discharge does not eliminate any lien on your property. A ‘‘lien’’ is often referred to as a security interest, deed of trust, mortgage or security deed. Even if you do not reaffirm and your personal liability on the debt is discharged, because of the lien your creditor may still have the right to take the security property if you do not pay the debt or default on it. If the lien is on an item of personal property that is exempt under your State’s law or that the trustee has abandoned, you may be able to redeem the item rather than reaffirm the debt. To redeem, you make a single payment to the creditor equal to the current value of the security property, as agreed by the parties or determined by the court.

NOTE: When this disclosure refers to what a creditor ‘‘may’’ do, it does not use the word “may’’ to give the creditor specific permission. The word ‘‘may’’ is used to tell you what might occur if the law permits the creditor to take the action. If you have questions about your reaffirming a debt or what the law requires, consult with the attorney who helped you negotiate this agreement reaffirming a debt. If you don’t have an attorney helping you, the judge will explain the effect of your reaffirming a debt when the hearing on the reaffirmation agreement is held.

PART B: REAFFIRMATION AGREEMENT.

I (we) agree to reaffirm the debts arising under the credit agreement described below.

1. Brief description of credit agreement:

2. Description of any changes to the credit agreement made as part of this reaffirmation agreement:

SIGNATURE(S):

Borrower:

(Print Name)

(Signature)

Date:

Co-borrower, if also reaffirming these debts:

(Print Name)

(Signature)

Date:

Accepted by creditor:

(Printed Name of Creditor)

(Address of Creditor)

(Signature)

(Printed Name and Title of Individual Signing for Creditor)

Date of creditor acceptance:

PART C: CERTIFICATION BY DEBTOR’S ATTORNEY (IF ANY).

[To be filed only if the attorney represented the debtor during the course of negotiating this agreement.]

I hereby certify that (1) this agreement represents a fully informed and voluntary agreement by the debtor; (2) this agreement does not impose an undue hardship on the debtor or any dependent of the debtor; and (3) I have fully advised the debtor of the legal effect and consequences of this agreement and any default under this agreement.

[Check box, if applicable and the creditor is not a Credit Union.] A presumption of undue hardship has been established with respect to this agreement. In my opinion, however, the debtor is able to make the required payment.

Printed Name of Debtor’s Attorney:

Signature of Debtor’s Attorney:

Date:

PART D: DEBTOR’S STATEMENT IN SUPPORT OF REAFFIRMATION AGREEMENT

[Read and complete sections 1 and 2, OR, if the creditor is a Credit Union and the debtor is represented by an attorney, read section 3. Sign the appropriate signature line(s) and date your signature. If you complete sections 1 and 2 and your income less monthly expenses does not leave enough to make the payments under this reaffirmation agreement, check the box at the top of page 1 indicating “Presumption of Undue Hardship.” Otherwise, check the box at the top of page 1 indicating “No Presumption of Undue Hardship”]

1. I believe this reaffirmation agreement will not impose an undue hardship on my dependents or me. I can afford to make the payments on the reaffirmed debt because my monthly income (take home pay plus any other income received) is $, and my actual current monthly expenses including monthly payments on post-bankruptcy debt and other reaffirmation agreements total $, leaving $ to make the required payments on this reaffirmed debt.

I understand that if my income less my monthly expenses does not leave enough to make the payments, this reaffirmation agreement is presumed to be an undue hardship on me and must be reviewed by the court. However, this presumption may be overcome if I explain to the satisfaction of the court how I can afford to make the payments here:

(Use an additional page if needed for a full explanation.)

2. I received a copy of the Reaffirmation Disclosure Statement in Part A and a completed and signed reaffirmation agreement.

Signed:

(Debtor)

(Joint Debtor, if any)

Date:

— Or —

[If the creditor is a Credit Union and the debtor is represented by an attorney]

3. I believe this reaffirmation agreement is in my financial interest. I can afford to make the payments on the reaffirmed debt. I received a copy of the Reaffirmation Disclosure Statement in Part A and a completed and signed reaffirmation agreement.

Signed:

(Debtor)

(Joint Debtor, if any)

Date:

PART E: MOTION FOR COURT APPROVAL

[To be completed and filed only if the debtor is not represented by an attorney during the course of negotiating this agreement.]

MOTION FOR COURT APPROVAL OF REAFFIRMATION AGREEMENT

I (we), the debtor(s), affirm the following to be true and correct:

I am not represented by an attorney in connection with this reaffirmation agreement.

I believe this reaffirmation agreement is in my best interest based on the income and expenses I have disclosed in my Statement in Support of this reaffirmation agreement, and because (provide any additional relevant reasons the court should consider):

Therefore, I ask the court for an order approving this reaffirmation agreement under the following provisions (check all applicable boxes):

11 U.S.C. § 524(c)(6) (debtor is not represented by an attorney during the course of the negotiation of the reaffirmation agreement)

11 U.S.C. § 524(m) (presumption of undue hardship has arisen because monthly expenses exceed monthly income)

Signed:

(Debtor)

(Joint Debtor, if any)

Date:

What the Form 240A Reaffirmation Agreement Is

The Form 240A Reaffirmation Agreement is a written contract used to confirm that a debtor will remain personally liable for a specific debt after a related event, commonly in bankruptcy or loan restructuring contexts. It restates original obligations or creates a new, express promise to pay, clarifies terms such as amount owed, payment schedule, and interest, and documents mutual consent. Courts and creditors rely on the reaffirmation to determine enforceability of post-bankruptcy liabilities and to record the parties' intentions for future collection or credit reporting.

Why a Reaffirmation Agreement Matters

A properly executed Form 240A preserves creditor rights, protects the parties by clarifying obligations, and creates a clear record that the debtor knowingly accepts liability. It reduces later disputes about intent, payment terms, and enforceability under applicable bankruptcy and contract law.

Who Typically Prepares or Signs This Agreement

Each signer should confirm authority and review legal counsel guidance before completing and executing the agreement.

Bankruptcy attorneys and trustees managing reaffirmation approvals and compliance with court requirements.
Consumer lenders and loan servicers documenting continued borrower liability and repayment terms.
Debtors who voluntarily agree to remain liable on secured or unsecured obligations.

Typical Signatory Roles

Lender Representative

Loan officers, in-house counsel, or authorized servicer agents prepare and approve the reaffirmation terms, verify borrower identity, and retain executed copies for collections and audit purposes. They ensure the agreement aligns with underwriting and regulatory policies.

Debtor / Borrower

The individual or entity who confirms continued liability by signing and dating the Form 240A; debtors should seek independent legal advice when possible to understand consequences, including effects on discharge and credit reporting.

Step-by-Step: Completing Form 240A

Follow these core steps to prepare, review, and execute the Form 240A in sequence to reduce errors and legal risk.

01

Gather Documents: Collect loan agreement, account statement, and bankruptcy docket reference.
02

Populate Fields: Enter names, account number, effective date, and payment terms as instructed.
03

Review with Counsel: Confirm consequences of reaffirmation and any court filing requirements.
04

Execute & Retain: Obtain signatures, notarize if required, and store executed copies securely.

How to Configure a Digital Reaffirmation Workflow

Set up an e-signature workflow to collect signatures, authenticate signers, and preserve an audit trail.

Field	Configuration
Signer Order	Sequential or parallel routing based on parties involved
Authentication	Email link plus SMS code or ID verification for higher assurance
Required Fields	Make key fields mandatory to prevent incomplete submissions
Document Retention	Enable tamper-evident PDF export and secure storage

Typical Digital Execution Flow

A standardized online signing process helps ensure validity and an auditable record for courts or collections.

Upload Document: Submit completed Form 240A PDF to the signing platform.
Place Fields: Add signature, date, and required text fields for each party.
Authenticate Signers: Use email link, SMS code, or higher-level ID proofing as required.
Complete Signing: Signer signs; system issues a certificate of completion and stores the audit trail.

Essential Components of a Complete Form 240A

A thorough Form 240A includes identifying details, explicit terms, and evidence of informed consent to reduce later disputes and to align with court expectations.

Parties

Full legal names and contact information for debtor and creditor, ensuring clear identification for enforcement and reporting.

Debt Description

Clear description of the original debt, account number, balance, and any collateral securing the obligation.

Reaffirmation Terms

Specific payment schedule, interest rate, late fees, and maturity date to remove ambiguity in obligations.

Consideration

Statement of consideration or benefit, if required, showing why debtor agrees to reaffirm liability.

Signatures and Dates

Signatures from all parties with dates and, when required, notary acknowledgements or witness attestations.

Court or Case Reference

Bankruptcy case number or court reference to tie the reaffirmation to the discharge or proceeding.

Supporting Documents to Include

Attach related records to make the reaffirmation defensible and easy to verify by third parties or a court.

Loan Agreement

Attach the original or a copy showing the loan terms and current balance to tie the reaffirmation to the obligation.

Bankruptcy Docket

Include bankruptcy case number and discharge order to link reaffirmation timing and court jurisdiction.

Account Statement

Provide a recent statement showing principal balance and payment history for verification.

Legal Advice Confirmation

Optional letter or affidavit indicating debtor received independent counsel when required or available.

Timelines and Time-Sensitive Considerations

Observe filing and execution timing requirements and allow lead time for reviews, notary scheduling, or court approval where necessary.

Court Deadlines:

Follow any reaffirmation filing deadlines set by the bankruptcy court or trustee.

Execution Timeframe:

Complete and sign after discharge or within creditor-specified windows to preserve rights.

Notary Scheduling:

Plan for notary or RON session availability; RON sessions may require identity proofing.

Retention Start:

Retention and reporting timelines often begin on the effective date of the reaffirmation.

Review Period:

Allow time for legal review; short windows increase risk of errors or inadequate counsel.

Key Processing Milestones

A sequential checklist of primary stages helps track progress from preparation to post-execution recordkeeping.

01

Prepare Draft

Populate form fields and attach supporting documents for internal review.

02

Legal Review

Obtain counsel or trustee approval and confirm implications for discharge and liability.

03

Execute & Authenticate

Obtain signatures, notarization, or RON identity proofing as required.

04

File & Store

Submit to court or trustee if required and retain executed copies with audit trail.

Common Preparation Pitfalls

Incomplete account identifiers that prevent linking the reaffirmation to the underlying loan.
Vague payment terms that create ambiguity over amounts, due dates, or default conditions.
Missing legal review when debtor rights or discharge implications are significant.
Failure to notarize or use required authentication leading to questions of enforceability.

Consequences of Errors or Omitted Steps

Enforceability Risk: A flawed reaffirmation may be void or unenforceable in court.

Collection Exposure: Creditors may lack clear legal basis to pursue post-discharge collection.

Regulatory Fines: Consumer finance violations can trigger regulatory enforcement.

Credit Reporting Issues: Incorrect account data can misreport balances and affect credit scores.

Bankruptcy Sanctions: Noncompliance with court procedures can lead to sanctions or rejection.

Increased Costs: Correcting errors often requires attorney time and additional filing fees.

Comparison: signNow and Common eSignature Alternatives

Overview of starting prices and capability differences for common eSignature providers; signNow appears first per vendor comparison conventions.

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Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
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Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Digital Signing and Technical Requirements

Ensure your platform supports required file formats, authentication, and storage to meet legal and operational needs.

File Formats: PDF, DOCX, and other common formats
Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace
Authentication: Email, SMS, KBA, or ID verification

Real-World Use Cases

Short examples show how different organizations use Form 240A in practice.

Bank Servicer Example

A servicer prepares the Form 240A after bankruptcy discharge to document a borrower’s voluntary reaffirmation.

They include account and security instrument references to avoid dispute.
The completed file is notarized and stored with audit trail metadata so collections and compliance teams can verify authority and timing without re-contacting the debtor.

Legal Counsel Example

Bankruptcy counsel drafts a reaffirmation reflecting negotiated payment terms and counsel confirmation.

Counsel certifies debtor received advice or waived it knowingly.
The executed instrument and counsel memorandum are filed with the trustee or retained in the case file to demonstrate informed consent and to support any court review.

Tips for Accurate and Efficient Completion

Follow these practical steps to reduce rework and legal risk when completing Form 240A.

Use Exact Legal Names

Enter names exactly as on government ID and loan documents to prevent misidentification and ensure accurate credit reporting.

Make Fields Mandatory

Require account number, effective date, and payment terms so forms cannot be submitted incomplete.

Authenticate Appropriately

Choose stronger authentication for debtor signature when the reaffirmation affects significant liabilities or secured property.

Preserve Audit Trails

Retain tamper-evident signed PDFs with timestamps, IP logs, and signer verification evidence for future disputes or audits.

Frequently Asked Questions and Troubleshooting

Answers to common questions about completing, signing, and storing the Form 240A Reaffirmation Agreement.

Need help? Contact support

Must the form be notarized?
Notarization requirements vary by state and lender; check local rules and the creditor’s policies. When real property is collateral, notarization or witness requirements are more likely; consult the state notary statute and the trustee if bankruptcies are involved.
Can this be signed electronically?
Yes, electronic signatures are generally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Exceptions include documents explicitly excluded by statute. Use reliable authentication and retention to meet the legal-validity test.
What if names do not match?
Mismatched names can delay acceptance and hinder enforcement. Correct names before execution or include a notarized name-clarifying affidavit; lenders often require exact matches for reporting and recording.
How long must the executed form be kept?
Retain executed reaffirmations for at least 3 years after termination and longer for tax- or property-related matters; HIPAA and SEC rules impose longer retention where applicable.
Does debtor consent need special disclosure?
For consumer-facing transactions, ESIGN requires a consumer disclosure about electronic records and consent processes (15 U.S.C. §7001(c)); confirm the disclosure is presented and consent captured before electronic signing.
How to correct a signed form?
Corrections generally require a rescission or amendment signed by all parties; consult counsel and, if applicable, the bankruptcy court or trustee before altering executed reaffirmations.

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