Reaffirmation Rules Changes in December

By: John L. Day, Jr., Esq.
The Supreme Court and the Judicial Conference of the United States have released new bankruptcy rules to take effect on December 1, 2008. The main change for consumer creditors is the new deadline for filling reaffirmation agreements. The new rule establishes a deadline of 60 days after the date of the first scheduled meeting of creditors to file the reaffirmation agreement. This means that, if the first meeting of creditors is continued, the deadline for filing a complaint is NOT extended. It stays the same. Any agreement filed after the 60-day deadline will not be legally effective.

Under the current rule, the deadline is the date the debtor’s discharge issues. That date could be near the new deadline or it could be delayed by days, weeks or months. Also under current procedure, the only way to extend the reaffirmation deadline is by an agreed order or by the debtor’s motion to delay the issuance of the discharge. Under the new rules, any party may file a motion to extend the reaffirmation deadline. Once the motion is filed, the discharge will not be issued until the motion to extend is overruled or the new deadline expires.

If you are handling reaffirmation agreements in house and need more time to get the agreement completed, signed and filed, you will need to send the account to your counsel to file a motion to extend the reaffirmation deadline.

Another change now permits any party in interest to file a motion to dismiss a Chapter 7 case or to convert it to a Chapter 13 if there is abuse. Previously, the rule provided that only the U.S. Trustee could file the motion to dismiss or convert a case for substantial abuse.

If you have any questions on this information, please contact Mr. John L. Day, Jr., Esq. Mr. Day is a partner in the Bankruptcy Department of the Real Estate Default Group at Weltman, Weinberg & Reis Co., L.P.A. in Cincinnati, Ohio. Mr. Day can be reached at (513) 723-2206 or via e-mail at

Client Advisory is published by Weltman, Weinberg & Reis Co., L.P.A. , an organization providing comprehensive creditor representation.  The information contained in this advisory is a summary of legal information and is not intended to constitute legal advice on specific matters or create an attorney-client relationship.  Contact any of our offices or visit our website at for more real estate related information, company facts and attorney profiles. ©2008


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