24 Hour Toll Free Help

Reaffirmation Agreement


Reaffirmation Agreement

Filing Chapter 7 Bankruptcy allows the debtor to discharge most of their debts and gives the debtor a "fresh start". Reaffirmation of the debt allows the debtor to keep paying the debt, which would generally have been dischargeable through the Chapter 7 Bankruptcy process, by liquidating the asset and keeping the collateral or the asset (car, motor home, boat or airplane).

The Bankruptcy Reform Act of 2005 allows a debtor who is filing for Chapter 7 Bankruptcy to complete a reaffirmation agreement before a Chapter 7 bankruptcy discharge is completed or the disclosure statements are received from the debtor's creditors. The Bankruptcy Court must approve all reaffirmation agreements and the debtor may cancel the reaffirmation agreement within 60 days of the signing. Reaffirmation agreements may not be allowed by the Bankruptcy Court if the court determines the debtor would be unable to meet the terms of the new debt payment agreement. Most bankruptcy lawyers argue a reaffirmation agreement should not be signed by the debtor unless the debtor is able to develop more favorable debt repayment options.

Signing the reaffirmation agreement is allowing the creditor to:

  • Creditors can legally repossess the car or asset if the debtor misses loan payments and does not make all the necessary payments outlined under the new contract.
  • Creditors can sell the repossessed car or asset to another buyer and sue the original debtor for the balance of the remaining loan.

If there are assets you would like to retain, it is important to talk to a bankruptcy lawyer. Under certain conditions you may be able to avoid signing a reaffirmation agreement and repay debt on a voluntary basis. All reaffirmation agreements must be signed and completed within 45 days from the date of the Creditor's Meeting.


More Help on Reaffirmation Agreement

  • Bankruptcy Court - United States federal courts have jurisdiction over all bankruptcy cases and the cases are not allowed to be filed in state court. - read more

  • Creditors Meeting - The Creditor\'s Meeting is intended to show the debtor has honestly stated their assets, debts and income for the bankruptcy filing. Debtors who do not attend the 341 Meeting may have their bankruptcy case dismissed. - read more

  • Dischargeable Debts - Dischargeable debts are all the debts which can be discharged by filing Bankruptcy (credit card balances, medical bills and personal loans). - read more

Chapter 7 and Chapter 13 Bankruptcy Help

The two most common consumer bankruptcies are Chapter 7 and Chapter 13, our sponsoring lawyers handle these types exclusively so you can be sure you are getting accurate legal advice when you file bankruptcy. Our Bankruptcy attorneys will fight to protect your rights and your property, fight the aggressive and annoying creditors for you, and they can help you keep your home, vehicles and other property.

A lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. There are many convenient locations to make filing bankruptcy or learning about the alternatives we offer, even easier.

Get Help Now

Recent Bankruptcy Articles

  • Home Equity and Bankruptcy
    If you have equity on your house, then it is possible to use that equity in order to pay off your Chapter 13 bankruptcy at a much faster pace.
    - read more

  • Fair Credit Reporting Act
    The primary purpose of the Fair Credit Reporting Act is to ensure fairness and accuracy of credit reporting, and that the procedures followed are reasonable.
    - read more

  • Most Common Reasons for Bankruptcy
    A list of ten most common reasons people usually file for bankruptcy, including harassment from creditors and to end wage garnishments.
    - read more

  • Student Loans and Bankruptcy
    According to new changes, your student loan will only be discharged if the bankruptcy court is convinced that paying back the loan would bring about undue hardships for you or the people who are dependent on you.
    - read more