What is creditor reaffirmation?

Creditor Reaffirmation is a process in the District of Columbia that allows a consumer to choose to continue to be liable for a certain debt after a bankruptcy filing. This means that even though the consumer is allowed to discharge most of their debts in bankruptcy, a consumer could choose to continue to be liable for certain debts. The reason a consumer might choose to reaffirm a debt is because the consumer wants to keep a certain asset that is tied to that debt, such as a car loan. Reaffirmation of the debt allows the consumer to keep the car, but the consumer has to continue to be liable for the debt until it is paid off. In order to reaffirm a debt, the consumer must first sign an agreement with the creditor. This agreement states that the consumer will remain liable for that debt, and the creditor can pursue the consumer inside and outside of the bankruptcy case. The consumer must also provide the creditor with a financial statement and proof of their income to prove that they have the means and ability to repay the debt. Once the agreement is signed the consumer must continue to make payments on the reaffirmed debt according to the terms on the agreement. If the debtor fails to make the payments, the creditor may take legal steps to collect the debt from the consumer. Creditor Reaffirmation is a process that is available to consumers in the District of Columbia to help them keep certain assets. It is important for consumers to understand the risks associated with reaffirming a debt, and to make sure that they can afford to make the payments before signing an agreement.

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What is creditor reaffirmation?

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