What is a “reaffirmation agreement” in a Chapter 11 bankruptcy?

A “reaffirmation agreement” in a Chapter 11 bankruptcy is a legal agreement between the debtor and the creditor that allows the debtor to keep a specific property or asset after filing bankruptcy. With a Chapter 11 bankruptcy, the debtor is allowed to keep certain property, such as a home or car, as long as he or she agrees to continue to pay for the item in full. This is done in order to protect the interests of the creditor. In Oklahoma, a reaffirmation agreement must be filed with the bankruptcy court. This agreement should include the name and address of the debtor, the creditor’s name and address, the property or asset in question, as well as the amount owed and any additional terms or conditions associated with the agreement. The debtor must sign the agreement and the creditor must also provide a signature, witnessed by an attorney or other authorized representative. Once the agreement has been filed, the debtor is legally obligated to make the payments required by the agreement. If the debtor fails to make payments, the creditor may be able to recover the collateral from the bankruptcy estate. It is important to note that if the debtor is unable to make the payments as agreed, he or she may be able to negotiate new terms with the creditor or seek to have the agreement cancelled. The reaffirmation agreement provides an opportunity for debtors to keep certain assets and retain their credit rating, while allowing creditors to feel more secure in their lending agreements. Both parties must make sure they understand the terms of the agreement before signing it, to ensure it is beneficial to all involved.

What is a “reaffirmation agreement” in a Chapter 11 bankruptcy?

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