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[Music] my name is Christy Myatt and Im a member of the Farm Credit team here at Nexen prove it in this video I will talk about why you need a reaffirmation agreement in a chapter 7 bankruptcy case chapter 7 allows the debtor to discharge certain debts in order to obtain a fresh start with respect to a secured debt the individual debtor has three options first the debtor can surrender the collateral back to the secured creditor note that the secured creditor will still need relief from stay to sell the collateral second the debtor can retain the collateral and redeem it by paying the value of the collateral in a lump sum and not in installments over time third the debtor can retain the collateral and enter into a reaffirmation agreement by agreeing to pay the full amount of the debt over time with interest what happens if the debtor does not exercise one of these three options this can occur if the value of the collateral exceeds the amount owed the secured creditor the debtor is cur