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In this video, Wes Scott from Life Back Law discusses whether to sign a reaffirmation agreement during Chapter 7 bankruptcy. A reaffirmation agreement allows you to retain personal liability for a loan—such as a mortgage or car loan—despite filing for bankruptcy. Generally, bankruptcy aims to eliminate personal liability, so reaffirming contradicts this goal. Additionally, while the bank's security interest in collateral (like a house or car) remains post-bankruptcy, it’s important to understand that bankruptcy doesn’t grant a free car or house. The survival of the bank's security interest is crucial for the stability of the financial system, as lenders need reassurance that they won't lose their collateral if a borrower declares bankruptcy.