What is a reaffirmation agreement?

A reaffirmation agreement is a contract that occurs in bankruptcy law and is most commonly found in the state of Washington. In a reaffirmation agreement, a debtor agrees to remain liable for a dischargeable debt. This means that the debtor may have received a discharge in bankruptcy for the debt but, with a reaffirmation agreement, they still remain responsible for the repayment of the debt. When signing a reaffirmation agreement, the creditor is promising not to try to collect the debt from the debtor even though the debt has been discharged. This allows the debtor to keep certain property that would otherwise be within the scope of a bankruptcy liquidation. The debtor is still responsible for the repayment of the debt, meaning that the creditor has the right to collect under the terms of the reaffirmation agreement. Reaffirmation agreements must be made voluntarily, without any coercion or pressure from the creditor. The debtor should also be notified of their right to revoke the agreement. Reaffirmation agreements are typically used when the debtor wishes to keep some secured property, such as a home or car, even though the debt on the property would normally be discharged in a bankruptcy.

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What is a reaffirmation agreement?

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