What is a reaffirmation agreement?

A reaffirmation agreement is a type of contract set up in Chapter 7 Bankruptcy Law in Virginia. It is an agreement between the debtor (the person filing for Chapter 7 bankruptcy) and the creditor (the person/entity the debtor owes money to) that states the debtor is willing to repay all or a portion of their debt even if it had originally been discharged. This agreement allows the debtor to keep the property they would have otherwise lost in the Chapter 7 bankruptcy (such as a car, home, or furniture) in exchange for a reduced payment plan. Reaffirmation agreements are beneficial for both the debtor and the creditor. For the debtor, it is a way to keep property that they would have otherwise lost in the bankruptcy. The creditor is also able to get back some of the debt owed to them, even if the debt was discharged. Under Chapter 7 Bankruptcy Law in Virginia, there are certain rules and regulations that must be followed when creating a reaffirmation agreement. It must be in writing and signed by both the debtor and the creditor, and it must include a statement that informs the debtor of their right to revoke the agreement. The debtor must also receive credit counseling from an approved agency before signing the agreement. Overall, a reaffirmation agreement is an agreement between the debtor and the creditor in Chapter 7 Bankruptcy Law in Virginia. It is beneficial to both parties and it allows the debtor to keep property in exchange for a reduced payment plan. It must follow certain rules and regulations before it is valid.

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