What is a reaffirmation agreement?

A reaffirmation agreement, also known as an "acknowledgment of debt," is a contract between a debtor and creditor that sets the terms for repayment after a debtor has declared bankruptcy. In Florida law, a reaffirmation agreement can be executed in court or outside of court with the consent of both the debtor and the creditor. When a debtor signs a reaffirmation agreement, they re-admit liability for a debt that they had previously discharged in bankruptcy. This means that if the debtor does not keep up with their payments, the creditor can take them to court for a judgment. A debtor cannot be forced to sign a reaffirmation agreement; it is entirely voluntary. A reaffirmation agreement also prevents certain creditors from reporting the debt to the credit bureaus. Because bankruptcy is reported to the bureaus, reaffirming the debt can allow a debtor to start re-building their credit score immediately. Reaffirmation agreements typically allow the debtor to agree to make payments on the amount of the debt or the original amount of the debt. They may also include terms that the debtor must agree to, such as repaying the entire amount of the debt and a certain interest rate. If a debtor decides to enter into a reaffirmation agreement, they must sign it and file the agreement with the court within 60 days from the end of the bankruptcy case. The court will then review the agreement for its validity. If the court approves the agreement, it will become a legally binding contract between the debtor and the creditor.

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What is a reaffirmation agreement?

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