Reaffirmation Agreements

What are Reaffirmation Agreements? A reaffirmation agreement effectively removes the protection afforded to you by the filing of Bankruptcy. In a Chapter 7 Bankruptcy you may be asked to sign a reaffirmation agreement. This agreement is required under the 2005 reform act for any debt secured by personal property that the debtor would like to keep. For many clients this process is confusing. The Bankruptcy Code on one hand requires the debtor to enter into these agreements, and on the other hand the Bankruptcy Code makes it difficult to enter into the agreement. If at all possible, the client should avoid signing a reaffirmation agreement, but in many cases it is unavoidable.