What is a reaffirmation agreement in a Chapter 7?

If a debtor signs a reaffirmation agreement, the debtor agrees to pay a debt that otherwise might be discharged in his or her bankruptcy case. There may be other ways to renegotiate payments with creditors without entering into a reaffirmation agreement.

What is reaffirmation agreement on mortgage?

A reaffirmation agreement is a legally binding agreement between you and a secured creditor. In the case of a mortgage, the agreement is between you and the mortgage lender. The agreement states that you agree to pay a loan under the same terms and conditions of its original contract.

How do I reaffirm a loan after bankruptcy?

Reaffirmation is the process wherein you agree to remain responsible for a debt so that you can keep the property securing the debt (collateral). You and the lender enter into a new contract—usually on the same terms—and submit it to the bankruptcy court.

What does it mean to reaffirm your mortgage in bankruptcy?

Reaffirmed Mortgages: In a bankruptcy case, a reaffirmation agreement is a legal contract stating that you promise to repay all or part of a debt that would have otherwise been released once the bankruptcy was discharged. Reaffirming your mortgage means that you are recommitting to the loan and all of its terms.

Should you reaffirm a mortgage in bankruptcy?

A reaffirmation agreement is when you agree to repay a debt after bankruptcy even if you receive a discharge on your other debts. When to Reaffirm a Mortgage. Reaffirming a debt is an individual choice, but reaffirmation should be carefully considered while taking into account the following factors: Desire .

Should I reaffirm my debt in bankruptcy?

Reaffirming a debt in bankruptcy means that you are agreeing to remain legally obligated to pay that debt, despite having filed a bankruptcy that would otherwise discharge it. Typically, it is not in a debtor’s best interest to reaffirm a debt because the debtor will then be liable for the entire debt should they later default on the loan.

Should a debtor reaffirm his debt in bankruptcy?

debtor is not required to reaffirm any of his or her debts. If a debtor signs a reaffirmation agreement, the debtor agrees to pay a debt that otherwise might be discharged in his or her bankruptcy case. There may be other ways to renegotiate payments with creditors without entering into a reaffirmation agreement. A creditor cannot compel