What is a reaffirmation agreement?

A reaffirmation agreement is a legal document used in Florida state creditors’ rights law. This document permits a debtor to keep and continue paying on a debt they would have otherwise eliminated from their liabilities from filing for bankruptcy. A reaffirmation agreement is a contract between the debtor and the creditor, signed under oath, that details agreements such as payments and other terms. The main purpose of a reaffirmation agreement is to allow a debtor to keep certain property, such as a car or a house, despite being in the process of bankruptcy. It gives the debtor an opportunity to keep the property while also being able to pay off the debt, which is usually secured by the property themselves. This is beneficial to both the debtor and the creditor. In Florida, a reaffirmation agreement is a legally binding contract and must go through a court approval process. The court must decide whether the agreement is appropriate for the circumstances and it must be determined that the debtor can actually afford to pay the debt as detailed in the agreement. In conclusion, a reaffirmation agreement is a legal document used in Florida creditors’ rights law that allows a debtor to keep and continue paying on a debt they would have otherwise eliminated through bankruptcy. It is a legally binding contract that requires court approval and must be determined that the debtor can afford to pay the debt as detailed in the agreement.

Related FAQs

What is the purpose of the UCC?
What is the meaning of “unsecured creditor”?
What is a lien avoidance action?
What is a non-dischargeability action?
What is a charging order?
What is a reaffirmation hearing?
How can creditors protect themselves from debtors who fail to pay?
What is a writ of execution?
What is a “confirmation hearing”?
What is an involuntary liquidation?

What is a reaffirmation agreement?

Related FAQs

Related Blog Posts