What is a reaffirmation agreement?

A reaffirmation agreement is a voluntary agreement made in a Chapter 7 Bankruptcy case where an individual debtor agrees to take on responsibility and pay a portion or all of a debt or obligation. This can occur even if the debt could have been discharged in the bankruptcy. The agreement must be in writing and must be signed by the debtor, the creditor, and the debtor’s attorney. Under the provisions of the Bankruptcy Code, the debtor has sixty days after the date of the 341 Meeting of Creditors to enter into such an agreement, which then must be filed with the Court. The debtor can also enter into the agreement before the 341 Meeting, but it must be filed with the Court after the 341 Meeting if the debtor wishes it to be enforceable and binding on the creditor. A reaffirmation agreement binds the debtor to comply with the terms of the original contract, such as paying all amounts due over the life of the debt. The Court must approve the reaffirmation agreement in order for it to be binding. If the Court does not approve the agreement, then the creditor may not collect from the debtor. The agreement also requires a disclosure from the creditor to the debtor of all the costs and fees associated with the reaffirmed debt. Reaffirmation agreements can help an individual debtor keep from having to start over with their credit after a bankruptcy, as they can maintain uninterrupted payments on their debt.

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What is a reaffirmation agreement?

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