Reaffirmation agreement form 2025

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What Is Reaffirmation? Reaffirmation is a type of agreement a debtor makes with a lender to repay some or all of a debt despite going through bankruptcy proceedings. When a person files for bankruptcy, they do so in order to be relieved of a debt burden they cannot pay.
A contractual agreement to repay such a debt is called a reaffirmation agreement and is entered into between the debtor and a specific creditor. Reaffirmation agreements are strictly voluntary. They are not required by the Bankruptcy Code or other state or federal law.
As long as the bank is willing to accept payments and you abide by the terms of your already existing loan, you should be able to keep the house and maintain payments to satisfy the mortgage but you will not likely be able to modify or refinance without having reaffirmed the debt.
A reaffirmation agreement is an agreement between a chapter 7 debtor and a creditor that the debtor will pay all or a portion of the money owed, even though the debtor has filed bankruptcy.
Reaffirmation agreements require court approval to make sure the debtor can reasonably afford to continue making the payments. If the debtor has an attorney, the attorney must confirm that the agreement is in the debtors best interest and wont cause undue financial hardship.
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A debtor may enter into a reaffirmation agreement in order to take a debt owed on an automobile (for example) and agree to remove that debt from being dischargeable. This is the case for many debtors who want to desire to keep their vehicle even though money is still owed on the car loan.

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