What does it mean to reaffirm on a debt or to redeem property?
To keep secured property, you must either reaffirm on the secured debt or redeem the property. Creditors decide whether they will agree to allow you to reaffirm a debt. You decide whether you will redeem property for a lump sum cash payment. If the debtor and the creditor cannot agree on a redemption price, the Court may decide the value of the property and the amount to be paid by the debtor. Most creditors will allow you to reaffirm if you are current on your loan with them and you have insurance covering the property securing the debt. To reaffirm a debt, you sign a written agreement setting out the terms of your repayment. The reaffirmation agreement advises you of your rights including the right to change your mind about reaffirming the debt during a 60 day period.
