What is a reaffirmation agreement?

A reaffirmation agreement is a document that a person filing for Chapter 7 bankruptcy in New Hampshire signs to keep certain property such as a car or other secured loan item. Through a reaffirmation agreement, the individual agrees to continue to make payments on the loan or item. In return, the creditor agrees to not repossess or take back the item. Reaffirmation agreements are voluntary, and courts must approve these agreements before they are valid. It is important to understand that reaffirmation agreements are legally enforceable contracts, and failure to abide by the terms of the agreement can lead to serious consequences. It is also important to note that reaffirmation agreements are not required in order to successfully complete a Chapter 7 bankruptcy in New Hampshire. Therefore, it is recommended that debtors think carefully before signing a reaffirmation agreement.

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