In both Oregon and Washington, a debtor in bankruptcy may rescind (cancel) a signed Reaffirmation Agreement at any within 60 days after the filing of the reaffirmation agreement with the court, or before the bankruptcy court enters a discharge order, whichever date occurs later.

Given the amount of money that is on the line in a reaffirmation, simply phoning the lender to let them know that you are rescinding will not do the trick.  If a Debtor in bankruptcy wants to make sure that she will not be stuck on a bad loan that could have been discharged in the bankruptcy case, the Debtor should send mail a written notice of rescission to the creditor’s address listed on the Reaffirmation Agreement that simply states that “I/we hereby rescind the Reaffirmation Agreement for the  ____________________” (the collateral). The debtor should also send the same notice by Certified US Mail Return Receipt Requested, and  (5) keep a copy of the letter and the service receipt for her records.

When mailing in a Written Notice of Rescission, it is important to keep in mind that it is not enough to send in the notice prior to the deadline date. The creditor must receive the Notice of Rescission prior to the deadline. If your Discharge Date is coming up, it might be time to really think about whether you really need to stay on the loans that you have  reaffirmed.

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