What is a reaffirmation agreement?

A reaffirmation agreement is a contract between a debtor and a creditor that allows a debtor to keep an item purchased before filing for bankruptcy, such as a car or home, even after the original debt for the item is discharged in the bankruptcy. In other words, it is an agreement to continue making payments on a debt even after the bankruptcy process has finished. A reaffirmation agreement is important for debtors in Washington because it allows them to keep an item that they would otherwise have to relinquish in the bankruptcy process. In addition, it helps both parties to maintain an ongoing business relationship. The reaffirmation agreement must be approved by the court and the debtor must fully understand the terms before it is signed and filed. The debtor must also prove that they can afford to pay the debt after the bankruptcy process. The reaffirmation agreement must also be reviewed by an attorney to ensure that the debtor will not be held liable for any future payments on the debt. Finally, a reaffirmation agreement cannot be used for any debts that have been discharged in a bankruptcy. A debtor must make sure that the agreement does not cover any debts that will be discharged and will only include debts that must be paid in order for the debtor to keep their item.

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What is a reaffirmation agreement?

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