Reaffirmation Agreements

What is a Reaffirmation Agreement?

Even if a debt can be discharged, you may have special reasons why you want to promise to pay it.  For example, you may want to work out a plan with the bank to keep you car.  To promise to pay that debt, you must sign and file a reaffirmation agreement with the Court.  Reaffirmation Agreements are under special rules and are voluntary.  They are not required under bankruptcy law or any other law.

Reaffirmation Agreements must be voluntary, must not place too heavy a burden on you or your family, must be in your best interest, and can be canceled anytime before the Court issues your discharge or within 60 days after the agreement is filed with the Court, whichever gives you the most time.

If you are an individual who is not represented by an attorney, the Court must hold a hearing to approve the reaffirmation agreement.  If you reaffirm a debt and then fail to pay it, you will owe that debt the same as though there was no bankruptcy.  That debt will not be discharged and the creditor can take action to recover that property, as well as take legal action to recover a judgment against you.