Boston Bankruptcy Lawyer

Reaffirmation Agreements

A reaffirmation agreement is a voluntary agreement that takes place between a debtor and a creditor. In this agreement, the debtor agrees to pay all or a portion of an otherwise dischargeable debt after the debtor has filed for bankruptcy. The debtor agrees to pay the creditor and, in exchange, the creditor agrees not to repossess an automobile or other property as long as the debtor makes the scheduled payments. The reaffirmation agreement must be enforceable under applicable non-bankruptcy laws and it must be made before a discharge has been granted.

Once the reaffirmation agreement has been made between the debtor and the creditor, a written agreement to reaffirm a debt must be filed with the bankruptcy court. The debtor’s attorney must file an affidavit that certifies the agreement as a fully informed and voluntary agreement. It also must certify that the agreement does not impose an undue hardship on the debtor or on a dependent of the debtor and that the attorney has fully advised the debtor of the legal consequences of the agreement and of a default under the agreement.

Reaffirmation agreements are required to be voluntary contracts. As such, a secured creditor is usually not required to agree to a proposed reaffirmation by the debtor. The automatic stay provisions prohibit creditors from coercing a debtor to reaffirm any pre bankruptcy petition debt.

Reaffirmation agreements, in addition to their use in situations involving secured debt, may be used by individuals who have credit card debt through a credit union. By paying back the debt to the credit union, the debtor maintains its good relationship with the credit union and is able to continue to do business with the credit union.

Contact a Boston Bankruptcy Attorney

For more information on reaffirmation agreements and other bankruptcy topics, contact Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346.