What is a reaffirmation agreement?

A reaffirmation agreement is an agreement made between a debtor and a creditor as part of a bankruptcy proceeding in Indiana. It is an agreement between the debtor and the creditor that they have a legal obligation to repay a debt, even if the debt would otherwise be discharged in the bankruptcy. Reaffirmation agreements often involve secured debts. These are debts that are secured by a physical item, such as a car or a home. In this case, a creditor may require the debtor to make payments in order to keep the item that is used as collateral. In order to enter into a reaffirmation agreement, both parties must agree to it. The debtor must sign the agreement and the creditor must agree to accept it. The creditor must also submit a disclosure statement to the debtor that outlines the terms of the agreement and the consequences of not fulfilling it. The court must also approve the reaffirmation agreement before it is enforceable. This is to ensure that the agreement is in the best interest of the debtor, based on their financial situation. If the court does not approve the agreement, the debt will still be discharged in the bankruptcy. Reaffirmation agreements can be valuable tools in bankruptcy proceedings as they can allow a debtor to keep items that may otherwise have been repossessed, or to maintain their credit rating.

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What is a reaffirmation agreement?

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