Reaffirmation Agreement

A Reaffirmation Agreement is a legal document filed by a debtor in a bankruptcy case to agree to continue paying a debt that would otherwise be discharged in the bankruptcy. The most common types of debts that are reaffirmed are secured debts, such as car loans or mortgages, where the debtor wants to keep the collateral. The Reaffirmation Agreement must be filed with the bankruptcy court and must include certain disclosures, such as the amount of the debt, the interest rate, and the debtor’s ability to make the payments. The debtor must also attend a hearing before the bankruptcy judge to confirm that the agreement is voluntary and does not impose an undue hardship on the debtor. If the Reaffirmation Agreement is approved, the debtor will be legally obligated to continue paying the debt according to the terms of the agreement.