What is a reaffirmed debt in Chapter 13 Bankruptcy?

A reaffirmed debt in Chapter 13 Bankruptcy is a debt that is essentially re-enacted or re-established by the creditor and debtor. This is an agreement between the two parties that a certain debt will remain valid, despite being included in the bankruptcy filing. The purpose of a reaffirmed debt is to satisfy the creditor without forcing the debtor to give up any personal property. When a debtor agrees to a reaffirmed debt, they are essentially agreeing to continue paying on the debt as they did prior to their filing. This allows the debtor to keep assets that the creditor may have otherwise gained control of through the bankruptcy process. In Washington, the parties involved in a reaffirmed debt must sign a form acknowledging the choice to reaffirm the debt. This form must then be filed with the bankruptcy court, and will become part of the debtor’s Chapter 13 filing. Once the bankruptcy is complete, the reaffirmed debt will not be discharged along with the other debts. The reaffirmed debt is designed to help creditors receive some remuneration from a Chapter 13 filing, while not subjecting the debtor to additional financial strain. Ultimately, the reaffirmed debt is a voluntary agreement between the creditor and the debtor that must be accepted by the bankruptcy court.

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What is a reaffirmed debt in Chapter 13 Bankruptcy?

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