What is a reaffirmation agreement?

A reaffirmation agreement is a legal agreement in Chapter 7 bankruptcy law in Washington that allows the debtor to voluntarily keep certain debts, such as a car or home loan, even after the bankruptcy case is completed. The agreement is a binding contract between the debtor and the creditor, and the creditor is allowed to seek payment for the debt from the debtor. This means that the debtor is legally obligated to pay back the debt. When signing a reaffirmation agreement, the debtor must state that he/she understands the terms of the agreement and is willing to take on the debt again. The debtor must sign the agreement in the presence of an attorney and the bankruptcy court must approve the agreement. Once approved, the debt is treated as if it was never discharged in the bankruptcy case, meaning that the creditor can sue for payment if need be. Reaffirmation agreements can be beneficial for debtors because they allow them to keep items that would otherwise be taken away, such as a car or home. It is important to note that the debtor is still responsible for making payments on the debt and any penalties or interest associated with it. It is also important to note that while signing a reaffirmation agreement is not required, it is highly recommended to consult with a bankruptcy attorney before signing to ensure that the agreement is in the debtor’s best interest.

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