What is a reaffirmation agreement?

A reaffirmation agreement is a legal document recognized in Virginia bankruptcy law. It is an agreement between a debtor and a creditor that the debtor will assume responsibility for a debt that was discharged in bankruptcy. This agreement allows the debtor to keep the property that was originally purchased with the debt and allows the creditor to recover the amount of the debt even though it was discharged in bankruptcy. In order for the agreement to be legally enforceable, it must be approved by the court, and the debtor must agree to the document in writing. In addition, the debtor must receive independent legal advice and must demonstrate that he/she can afford to pay back the debt. If a debtor is unable to meet these requirements, then the court will deny the reaffirmation agreement. Once the court approves the agreement, it becomes binding and the debtor must pay back the debt in full according to the terms specified in the agreement. The creditor can then take legal action to collect the debt if the debtor does not pay according to the agreement. Reaffirmation agreements are an important part of bankruptcy law in Virginia and are a legal way for creditors and debtors to come to an agreement about repayment of discharged debts.

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What is a reaffirmation agreement?

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