What is a reaffirmation agreement?

A reaffirmation agreement is a type of bankruptcy agreement in Hawaii which allows a debtor, or person filing for bankruptcy, to keep certain assets from being liquidated. The agreement states that the debtor will still make payments on specific debts even though those debts could potentially be forgiven in a standard bankruptcy case. Essentially, a debtor would make an agreement with their creditors (those from whom they owe money) to reaffirm their debt. This means that they have agreed to pay the debt in full and on time, even if they would otherwise be allowed to make a lesser payment or have the debt wiped away through bankruptcy. The debtor will need to fill out a separate form for each of the debts they want to reaffirm and must sign the agreement. In some cases, the agreement must also be approved by the court. Once the agreement is signed, the debtor will need to make the agreed upon payments according to the terms laid out in the document. If the debtor fails to make the payments, the creditors may take legal action against them. Additionally, reaffirming the debt means that it cannot be discharged in bankruptcy, so if the debtor fails to pay, they will still be liable for the debt.

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What is a reaffirmation agreement?

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