What is a reaffirmation agreement in Chapter 13 Bankruptcy?

A reaffirmation agreement in Chapter 13 Bankruptcy is a contract between a debtor and a creditor that allows a debtor to maintain ownership of certain secured property even after filing for bankruptcy. In other words, a debtor can agree to give up the protection of the bankruptcy court and continue to make payments on a secured debt. This agreement allows a debtor to keep a secured property such as a car or a home. When a debtor signs a reaffirmation agreement, they are obligated to continue to make payments as outlined in the agreement. The debtor is then responsible for staying current on the payments or else the creditor can repossess the property that has been reaffirmed. In West Virginia, it is important for a debtor to realize that they can choose whether or not to sign a reaffirmation agreement, but if they choose to do so, it must be filed with the court in order to be legally binding. The court then must approve the agreement, ensuring that the debtor is not being coerced into entering into the agreement or that the agreement does not create a financial hardship. The court allows debtors a certain period of time to revoke a reaffirmation agreement before it becomes legally binding. In conclusion, a reaffirmation agreement in Chapter 13 Bankruptcy is an agreement that allows a debtor to maintain ownership of certain secured property even after filing for bankruptcy. The debtor can choose to sign a reaffirmation agreement, but must file it with the court for it to be legally binding. The court will approve the agreement to ensure that it does not place an undue financial burden on the debtor.

What is a reaffirmation agreement in Chapter 13 Bankruptcy?

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