What is a reaffirmation agreement?

A reaffirmation agreement is a contract between a debtor and a creditor that allows a debtor to reaffirm their debt even though they have filed for bankruptcy. The agreement states that the debtor will remain responsible for the debt and that the creditor can continue to seek payment for the debt. In California, the court will usually require a debtor to enter into a reaffirmation agreement in order for them to be protected from certain collections actions by the creditor. In order for the agreement to be valid, the debtor must be able to make the payments on the loan, and the agreement must be approved by the U.S. Bankruptcy Court. When a debtor signs a reaffirmation agreement, they are agreeing to pay back all or part of the debt in question. This can be beneficial to the creditor because they can continue to receive payments from the debtor, while the debtor is released from the remainder of the debt. While a reaffirmation agreement can be beneficial to both the debtor and the creditor, it is important to make sure that it is in the debtor’s best interest to enter the agreement. Before signing the agreement, the debtor should consult a bankruptcy attorney to make sure that it is in their best interest to do so.

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What is a reaffirmation agreement?

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