Reaffirmation Agreement

What does Reaffirmation Agreement mean?

A reaffirmation agreement is a formal agreement by a debtor made with a creditor to continue paying a debt that can be discharged in bankruptcy. The agreement eliminates the debtor's rights to a bankruptcy discharge for that particular debt. Because a debtor is giving up his or her legal right to the bankruptcy process, a debtor is not allowed to reaffirm a debt or sign a reaffirmation agreement without the written consent of a legal representative and/or the bankruptcy court judge.

Unless a bankruptcy court has been shown a debtor benefits from a reaffirmation agreement, many bankruptcy courts will not allow them. Many bankruptcy lawyers may also refuse to sign permission for a debtor to submit a reaffirmation agreement to the court.

Reaffirmation agreements are normally sought by secured creditors if the debtor expresses the desire to keep secured property after the bankruptcy has closed. Signing a reaffirmation agreement will guarantee the secured asset will not be repossessed or foreclosed on, but there is also no guarantee a creditor will do either, if the debtor has not defaulted on the loan other than filing for bankruptcy protection.

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Bankruptcy Attorneys near Ashburn VA

R and B Law Group, PLLC

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7700 Leesburg Pike, Suite 312
Falls Church, VA 22043

Andrews Law Firm

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122 North Alfred Street
Alexandria, VA 22314

Scott R. Sexauer, Attorney at Law

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10521 Judicial Drive, Suite 200
Fairfax, VA 22030

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Non Discharged Debt

Non-discharged debt is any debts which are not discharged through bankruptcy.

Category: bankruptcy