Can Form 240B be signed electronically?

Yes in most jurisdictions when the signature meets ESIGN/UETA standards: intent, consent, attribution, and reliable retention. Confirm local court e‑filing rules and whether the court accepts electronically signed exhibits.

What if names do not match court records?

Correct the name to match the bankruptcy petition. Mismatched names often cause clerks to reject filings; if a legal name change exists, attach supporting documentation.

Does the court always hold a hearing before the order?

Not always. Some reaffirmations are approved on the papers after review; others require a hearing where the judge may question voluntariness and fairness before issuing Form 240B.

How long can a debtor rescind a reaffirmation?

Federal consumer protections often allow a short rescission window after signing; check local rules and the agreement’s text. Rescission may affect enforceability and should be coordinated with counsel.

What if the creditor refuses to sign?

Without the creditor’s signature and acceptance, a reaffirmation typically cannot be approved. Discuss modification options or alternative arrangements with creditor counsel or trustee.

Where should final signed copies be stored?

Retain a PDF of the signed agreement, the court’s final Form 240B order, and the eSignature audit trail for the recommended retention period and any longer state or industry requirements.

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Form 240B Order on Reaffirmation Agreement

Form 240B Order on Reaffirmation Agreement

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Form 240B - Order on Reaffirmation Agreement (1/07)

United States Bankruptcy Court

District of

In re

Case No.

Debtor

Chapter

ORDER ON REAFFIRMATION AGREEMENT

The debtor(s) has (have) filed a motion for approval of

the reaffirmation agreement dated made between the debtor(s) and

The court held the hearing required by 11 U.S.C. § 524(d)

on notice to the debtor(s) and the creditor on

COURT ORDER:

The court grants the debtor's motion under 11 U.S.C. § 524(c)(6)(A)
and approves the reaffirmation agreement described above as not
imposing an undue hardship on the debtor(s) or a dependent of the
debtor(s) and as being in the best interest of the debtor(s).

The court grants the debtor's motion under 11 U.S.C. § 524(k)(8)
and approves the reaffirmation agreement described above.

The court does not disapprove the reaffirmation agreement under
11 U.S.C. § 524(m).

The court disapproves the reaffirmation agreement under
11 U.S.C. § 524(m).

The court does not approve the reaffirmation agreement.

BY THE COURT

Date:

United States Bankruptcy Judge

What the Form 240B Order on Reaffirmation Agreement Is

The Form 240B Order on Reaffirmation Agreement documents a bankruptcy court’s approval of a debtor’s reaffirmation agreement with a creditor. A reaffirmation agreement preserves the debtor’s personal liability for specific secured or unsecured debt that otherwise would be discharged, and the court issues an order when it finds the agreement voluntary, in the debtor’s best interests, and properly executed.

Why this order matters in bankruptcy cases

A court-issued Form 240B order makes a reaffirmation agreement enforceable and clarifies post‑bankruptcy liabilities; it protects creditor rights and confirms the debtor’s continued payment obligations when the court determines the agreement meets legal standards.

Who commonly completes Form 240B and why

Bankruptcy debtors, creditors, and bankruptcy counsel use this form when a party seeks to preserve an existing obligation rather than have it discharged.

Debtors — individuals or businesses signing to retain specific debts and regain certain assets or services
Creditors — lenders or servicers filing and supporting the agreement to protect secured interests
Bankruptcy Counsel — attorneys preparing documents, certifying counsel statements, and presenting the agreement to the court

The court, through the trustee or judge, reviews the agreement and issues Form 240B when statutory and procedural conditions are satisfied.

Typical signers and their roles

Debtor — Signer

The debtor signs to acknowledge voluntary agreement to remain liable for the specified debt. The debtor’s signature must match the name on court records and may be scrutinized for competency and voluntariness during court review.

Creditor — Representative

A creditor or authorized representative signs to accept the terms and to request court approval. Creditors often include an officer or counsel signature and must provide account details and supporting documentation.

Essential fields required on the form

Debtor Name: Full legal name

Creditor Name: Official creditor name

Case Number: Bankruptcy docket number

Debt Description: Account or collateral ID

Reaffirmation Terms: Payment amount and schedule

Signature Block: Signer names and dates

Risks and consequences of errors

Loss of Discharge: Debtor remains liable

Court Rejection: Agreement may be denied

Creditor Liability: Improper terms can be invalid

Rescission Risk: Debtor can rescind rights apply

Tax Impacts: Potential reporting consequences

Enforceability: Missing details weaken proof

Common preparation mistakes to avoid

Incomplete case or account numbers that prevent matching the agreement to the bankruptcy docket and cause court delays.
Using informal or abbreviated party names that differ from official court pleadings, creating identity mismatches during review.
Omitting the creditor’s written acceptance or failing to attach required account statements and supporting exhibits.
Missing debtor advisals or consumer disclosures required for voluntary reaffirmation and rescission rights, risking court rejection.

Step-by-step: completing and submitting Form 240B

Follow these steps to complete the form accurately and increase the chance of court approval.

01

Confirm Eligibility: Verify debtor and debt qualify for reaffirmation
02

Complete Agreement: Populate all required fields and attach supporting documents
03

Obtain Signatures: Collect debtor and creditor signatures and dates
04

File With Court: Submit the agreement and request an order approving reaffirmation

How the reaffirmation approval process flows

A clear workflow improves accuracy and shortens processing; these are the typical steps from document preparation to court order.

Prepare Document: Draft agreement and collect account details
Sign Parties: Debtor and creditor sign; counsel certifies if required
Submit Filing: File with the bankruptcy clerk or e‑filer
Court Order: Judge reviews and issues Form 240B order

Key components of a professional Form 240B filing

Ensure each component is complete, clearly labeled, and supported by documentation to meet court standards for voluntary and informed reaffirmation.

Party Identification

List debtor and creditor names exactly as used in the bankruptcy case; include addresses and contact information so the clerk and trustee can verify identities and service requirements.

Case References

Include the bankruptcy case number, chapter type, and court division on every page so the submission is logged correctly and linked to the correct docket entry.

Reaffirmation Terms

State the reaffirmed balance, interest rate, installment schedule, and any modification of original terms; avoid vague descriptions that hinder enforceability or court review.

Counsel Certification

If debtor has counsel, attach the attorney’s certification regarding advice given and whether agreement places undue hardship on the debtor, as required by some local rules.

Supporting Schedules

Attach account statements, payoff calculations, and any security descriptions to substantiate the amount and collateral referenced in the reaffirmation agreement.

Order Language

Draft proposed order text clearly requesting the court’s approval and specifying effective date; courts commonly prefer a single-page proposed order for docketing.

Typical digital workflow settings for online completion

Configure the e‑sign and routing settings to match court filing requirements and to preserve a complete audit trail.

Field	Configuration
Document Format	PDF/A with editable signature fields
Signer Order	Debtor then creditor then attorney (if applicable)
Authentication	Email link + optional SMS code
Retention Setting	Preserve audit trail and final PDF

Technical requirements for electronic signing and filing

Ensure your signing platform supports court-acceptable file formats, a verifiable audit trail, and secure signer authentication before e‑filing.

File Formats: PDF/A and standard PDF
Audit Trail: IP, timestamp, and action log
Authentication: Email link or multi-factor

Confirm local court e‑filing rules for electronic submissions and retain original signed PDFs plus the platform’s audit record for the required retention period.

Comparing eSignature vendors for Form 240B workflows

Vendor pricing and feature differences affect recurring costs and suitability for court-oriented workflows; signNow is shown first for direct comparison.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Common questions and practical answers

Answers to frequent questions about completing, signing, and filing Form 240B, with practical steps to resolve typical issues.

Need help? Contact support

Can Form 240B be signed electronically?
Yes in most jurisdictions when the signature meets ESIGN/UETA standards: intent, consent, attribution, and reliable retention. Confirm local court e‑filing rules and whether the court accepts electronically signed exhibits.
What if names do not match court records?
Correct the name to match the bankruptcy petition. Mismatched names often cause clerks to reject filings; if a legal name change exists, attach supporting documentation.
Does the court always hold a hearing before the order?
Not always. Some reaffirmations are approved on the papers after review; others require a hearing where the judge may question voluntariness and fairness before issuing Form 240B.
How long can a debtor rescind a reaffirmation?
Federal consumer protections often allow a short rescission window after signing; check local rules and the agreement’s text. Rescission may affect enforceability and should be coordinated with counsel.
What if the creditor refuses to sign?
Without the creditor’s signature and acceptance, a reaffirmation typically cannot be approved. Discuss modification options or alternative arrangements with creditor counsel or trustee.
Where should final signed copies be stored?
Retain a PDF of the signed agreement, the court’s final Form 240B order, and the eSignature audit trail for the recommended retention period and any longer state or industry requirements.

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