What is debt reaffirmation?
A debtor agrees to repay a debt even when it might have been forgiven in the course of the bankruptcy proceeding. What is a debt reaffirmation agreement? It is a legally enforceable written contract in which a Chapter 7 debtor agrees to repay all or a portion of debt that may otherwise have been discharged by the bankruptcy court. Is debt reaffirmation legal? Yes, as long as the agreement is: • Voluntary. • Made with or without the advice of an attorney. • Filed with the bankruptcy court. • Approved in certain circumstances by the bankruptcy court. Why would a consumer want to reaffirm a debt? As an example, a person who needs her automobile to get to her place of employment might be willing to reaffirm that particular debt to avoid having the vehicle repossessed by the creditor. Can a debt reaffirmation agreement be canceled? Yes, under certain circumstances, such as: • Before the court issues a discharge, or • Within 60 days from the date the reaffirmation agreement is filed with the
