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In this tutorial, Wes Scott from Life Back Law discusses the implications of signing a reaffirmation agreement during Chapter 7 bankruptcy. A reaffirmation agreement allows you to retain personal liability for certain loans, such as those for a house or car. Generally, filing for bankruptcy aims to eliminate personal liability, making reaffirmation counterintuitive. It's important to note that while a bank's security interest in the collateral remains post-bankruptcy, no one receives a free asset. The concept underscores the risk to lenders and the stability of the financial system, as allowing such practices would undermine lending practices and the economy.