What is creditor reaffirmation?

Creditor reaffirmation is a process in Mississippi bankruptcy law where a debtor can keep certain items, such as a car, even though they are legally required to give them up due to bankruptcy. The debtor agrees to continue paying the creditor and still owes the obligation after the bankruptcy. Creditor reaffirmation is used when a debtor has a particular asset that is important and needs to be kept, such as a car, home, or other personal items. A debtor can enter into an agreement with the creditor in which the debtor agrees to continue paying the agreed-upon amount until the debt is paid in full. In exchange, the debtor is able to keep the asset. The creditor must agree to the reaffirmation agreement and both the creditor and debtor must sign it. The debtor must also attend a court hearing to demonstrate that they are able to pay the creditor and that the agreement is in the best interest of both parties. Creditor reaffirmation is a way to protect assets in a bankruptcy process in Mississippi. It allows debtors to keep assets that they would have otherwise had to give up and still be legally obligated to pay the creditor.

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What is creditor reaffirmation?

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