• Bankruptcy Information online :

What is a Reaffirmation Agreement?

Even if a debt can be discharged, you may have special reasons why you want to promise to pay it. For example, you may want to work out a plan with the bank to keep your car. To promise to pay that debt, you must sign and file a reaffirmation agreement with the court. Reaffirmation agreements are under special rules and are voluntary. They are not required by bankruptcy law or by any other law.

Reaffirmation agreements:

must be voluntary;
must not place too heavy a burden on you or your family;
must be in your best interest; and
can be canceled anytime before the court issues your discharge or within 60 days after the agreement is filed with the court, whichever gives you the most time.
If you are an individual and you are not represented by an attorney, the court must hold a hearing to decide whether to approve the reafirmation agreement. The agreement will not be legally binding until the court approves it.

If you reaffirm a debt and then fail to pay it, you owe the debt the same as though there was no bankruptcy. The debt will not be discharged and the creditor can take action to recover any property on which it has a lien or mortgage. The creditor can also take legal action to recover a judgment against you.
www.usdoj.gov

• enter bankruptcy protection
• can bankruptcy stop foreclosure

• Bankruptcy
• When you file bankruptcy
• What Is a Reaffirmation Agreement
• What Is a Bankruptcy Discharge
• Chapter 7, Title 11, United States Code

• Bankruptcy Process
• Bankruptcy Filing Fees
• Chapter 7
• Chapter 7 Eligibility
• How Chapter 7 Works
• Role of the Case Trustee
• Chapter 7 discharge

The Bankruptcy Code governs the process of liquidation under the bankruptcy laws of the United States. (In contrast, Chapter 11 governs the process reorganization of a bankruptcy). Chapter 7 is the most common form of bankruptcy in the United States.

• The New Bankruptcy Law
• Bankruptcy Requirements Eased for Hurricane Victims