What is a reaffirmation agreement in Chapter 13 Bankruptcy?

A reaffirmation agreement in Chapter 13 Bankruptcy is a contract that a person files with the court that states they are still responsible for the debt they owed before they filed for bankruptcy. This agreement allows them to keep a particular asset, such as a car or house. In New York, a reaffirmation agreement must be approved by the Bankruptcy Court to be valid. In a Chapter 13 Bankruptcy, when the debtor proposes their repayment plan to the creditors, agreeing to repay most or all of their debts, the debtor can sometimes make a separate agreement with a creditor to repay a particular debt in full. This is called a reaffirmation agreement. The conditions for a valid reaffirmation agreement in New York include that the debtor receives independent legal advice from an attorney about the agreement and the agreement must be in writing. The agreement must also be reviewed and approved by the Bankruptcy Court to make sure it is in the best interest of the debtor and creditors. Reaffirmation agreements are an important part of the Chapter 13 Bankruptcy process in New York. They help the debtor keep certain assets such as a car or house, while also helping the creditors recover a greater portion of the money they are owed.

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What is a reaffirmation agreement in Chapter 13 Bankruptcy?

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