What is a reaffirmation hearing?

A reaffirmation hearing is a hearing held in court to determine if a debtor and creditor can enter into a reaffirmation agreement, which is a new agreement for repayment of a debt. In Washington, reaffirmation hearings are held in bankruptcy court and involve creditors and debtors who have defaulted on their debts or are in danger of defaulting. The debtor is asked to appear in court and present a plan to the court that outlines the proposed terms of the agreement. This plan must prove that the debtor has the ability to make payments to the creditor and that the agreement is in the best interests of both parties involved. The court will then review the agreement and decide whether to approve it or not. The court may approve the agreement if it finds that the debtor can financially afford to make the payments and that the agreement is likely to result in a net benefit to the creditor. If the court approves the agreement, both parties must sign it, and it becomes legally binding. Reaffirmation hearings help creditors get some of their money back, while also allowing debtors to possibly avoid having items that were purchased on credit repossessed or sold. The court system also benefits from reaffirmation hearings because they help settle disputes between creditors and debtors and can prevent lengthy, expensive court cases.

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