What is a reaffirmation agreement in Chapter 13 Bankruptcy?

A reaffirmation agreement in Chapter 13 Bankruptcy law in Virginia is an agreement between the debtor and the creditor where the debtor agrees to continue to be legally responsible for a debt, even though that debt could normally be eliminated through the bankruptcy process. The purpose of a reaffirmation agreement is to help the debtor keep certain property that would normally be taken away during the bankruptcy process, such as a car or home. By signing the reaffirmation agreement, the debtor agrees to continue making payments on the item as if the bankruptcy had never occurred. If a debtor signs a reaffirmation agreement, it should be noted that the agreement is binding and the debtor cannot simply just decide to stop making payments on the item. The debtor is still legally obligated to make payments on the repayments, just as if the bankruptcy had not occurred. Additionally, the debtor must be able to prove that they can actually afford the payments by showing their income and expenses. If the court finds that the debtor cannot reasonably afford the payments, the court may refuse to allow the reaffirmation agreement. In summary, a reaffirmation agreement in Chapter 13 Bankruptcy law in Virginia is a legally binding agreement between the debtor and the creditor that allows the debtor to keep certain property if they continue to make payments on the repayments as if the bankruptcy had never occurred.

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What is a reaffirmation agreement in Chapter 13 Bankruptcy?

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