Navigation:  Bankruptcy Transaction Screen > Bankruptcy Transactions field group > Reaffirmation/Reaffirmed Date

Entry: User, radio

F/M: Yes

Mnemonic: None

 

Reaffirmation transactions should only occur on Chapter 7 bankruptcies.

 

A reaffirmation is a voluntary and non-legally binding agreement between a creditor and a debtor concerning restructured loan payments that continue even during bankruptcy (usually in a case where the debtor wants to keep a piece of collateral).

 

If you want to reaffirm part of the bankruptcy debt, select this radio button then click <Run Transaction>. The system will update the CIID (Consumer Information Indicator) to be "R - Reaffirmation of Debt." This will be reported to credit repositories at monthend during the Credit Reporting process. You may then want to set up a repayment schedule on the Loans > Collections > Bankruptcy Information screen > Repayment Plan tab.

 

When this transaction is run, action code 94 and the associated action code date, along with the bankruptcy hold code, are removed from the loan.

 

For a more detailed explanation, see the main Bankruptcy Transaction screen help.