Which of the Following Is NOT Required for a Reaffirmation

question 88

Multiple Choice

Which of the following is NOT required for a reaffirmation of debt?

• A) The reaffirmation agreement is made after the debt is discharged
• B) The reaffirmation agreement is made before the debt is discharged
• C) The debtor must be able to cancel the agreement
• D) The agreement must contain explicit information regarding the time period in which the debtor can cancel the agreement.
• E) The agreement should contain a statement notifying the creditor that the law does not require the agreement.

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Definitions:

Discounted Payback Period

The time period needed to recover the cost of an investment when considering the time value of money through discounted cash flows.

Cash Inflows

The total amount of money being transferred into a business, typically from operational, financing, and investment activities.

Required Rate

The minimum annual rate of return that an investor expects to achieve on an investment.

After-tax Cash Inflows

The amount of cash generated from any business activity after accounting for taxes.