What is a reaffirmation agreement?

A reaffirmation agreement is a type of agreement in bankruptcy law in Texas that allows a debtor to keep a particular asset such as a house or a car. It is used when the debtor does not want the asset to be taken away in a bankruptcy case. In order to enter into a reaffirmation agreement, the debtor must enter into a binding agreement with the creditor that states that the debtor will remain liable for the debt obligation even if the underlying asset is sold during the bankruptcy proceeding. The debtor must also demonstrate that they can make the payments on the reaffirmation agreement. The purpose of a reaffirmation agreement is to allow the debtor to keep the asset they are trying to keep, while also ensuring that the creditor will still get the money owed to them. This way, the debtor can make payments on the underlying debt without the creditor having to take the asset away or sue the debtor for the money owed. Reaffirmation agreements are a way for the debtor to keep their assets while also ensuring that the creditor is paid in full. The debtor must prove that they can make the payments and demonstrate that they can comply with the agreement, so it is important to consult an attorney if considering entering into a reaffirmation agreement.

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What is a reaffirmation agreement?

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