What is a reaffirmation agreement?

A reaffirmation agreement is a legal document in the state of North Carolina that allows a debtor to continue paying off a debt despite filing bankruptcy. The debtor and the creditor both agree to the terms of the reaffirmation agreement and the debt becomes binding on the debtor, even after the bankruptcy case is complete. Reaffirming a debt means that the debtor agrees to pay the debt in full, including any attorneys’ fees and/or late fees, even after the bankruptcy case is discharged. The debtor can still file for bankruptcy, but the reaffirmed debt remains with the debtor after the bankruptcy case is completed. Reaffirming a debt is voluntary; the debtor is not required by law to do so. However, if the debtor chooses to reaffirm a debt, the agreement must be signed before the case is discharged; otherwise, the agreement is not legally binding. Additionally, if the debtor fails to keep up with the payments, they may still be held liable for the debt, including any late fees and/or attorneys’ fees. The debt may also appear on the debtor’s credit report until the debt is paid in full. Before agreeing to a reaffirmation agreement, the debtor should carefully consider their situation and make sure they can afford to make the payments for the duration of the loan. They should also talk to an attorney to make sure reaffirming the debt is the best option for their situation.

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What is a reaffirmation agreement?

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