What is creditor reaffirmation?

Creditor reaffirmation is a legal concept in bankruptcy law in Virginia. It is a voluntary agreement between a debtor and creditor in which the debtor agrees to continue making payments on a debt even though it is dischargeable in bankruptcy. The debtor must make a written agreement with the creditor and reaffirm the debt in order to keep the property pledged as collateral for the debt. The debtor may reaffirm the entire amount of the debt or a portion of it. Reaffirmation agreements are legally binding, and if the debtor does not make payments, the creditor may take legal action to collect the debt. Reaffirmation is not required by law, most creditors will not reaffirm a debt unless it is done voluntarily. In addition, if the agreement is not reasonable or beneficial to the debtor, it may be set aside by a court. Therefore, when considering reaffirmation of a debt, it is best to consult with a knowledgeable bankruptcy attorney.

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What is creditor reaffirmation?

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