What is a reaffirmation agreement?

A reaffirmation agreement is a type of legal contract that is used in the state of California to address the legal debt or obligations of a debtor and creditor. It is a formal way for the debtor to agree to repay a specific debt that has been discharged in bankruptcy. In a reaffirmation agreement, the debtor agrees to remain responsible for the debt and acknowledges that they still owe the creditor. This can include agreeing to pay the debt in full as well as interest and attorney fees, if any. In return, the creditor agrees that they will not take any other action against the debtor, such as filing a lawsuit or trying to collect the debt. Reaffirmation agreements are typically used when a debtor wants to keep an asset, such as a car or house. By entering into a reaffirmation agreement, the debtor is able to keep the asset even after the debt has been discharged in bankruptcy. This allows the debtor to make good on their obligations while still maintaining ownership of the asset. Reaffirmation agreements can be very helpful in ensuring that debtors are able to stay responsible for their debts without having to worry about losing any of their assets in the process. It is important to recognize, however, that entering into a reaffirmation agreement can have serious implications for the debtor’s credit score and financial situation in the future. Therefore, it is important to understand the risks and rewards before entering into a reaffirmation agreement.

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What is a reaffirmation agreement?

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