Bankruptcy Terms Explained in Plain English
Reaffirmation Agreement
The Short Answer
An agreement to remain personally responsible for a debt that would otherwise be eligible for discharge.
Why it matters
Reaffirmation can preserve liability after bankruptcy. It is not simply another name for making monthly payments. Whether it is appropriate requires review of the loan, budget, risks, and applicable requirements with your attorney.
A simple example
Before signing documents about a vehicle loan, a client asks whether the agreement would leave them liable if they later cannot pay.
Illustrative only; not a prediction of any case outcome.
Reaffirmation in Chapter 7: the decision behind the paperwork
Reaffirmation is voluntary, but keeping a financed vehicle requires a separate review of the loan and bankruptcy requirements. A valid agreement leaves you personally liable: a later default may mean repossession and a deficiency claim. Do not sign merely because a lender sends a form.
What should your attorney review?
The balance, interest rate, vehicle value, budget, alternatives, and default risk all matter. The agreement must meet applicable disclosures, filing, certification, and approval requirements and be made before discharge. Simply continuing payments is not a guaranteed right to keep a vehicle, and reaffirmation does not guarantee credit reporting or a better score.
Can a reaffirmation agreement be canceled?
Section 524(c) permits rescission by notifying the creditor before discharge or within 60 days after the agreement is filed, whichever is later. Ask your attorney to confirm the deadline and handle the required notice promptly.
Source: 11 U.S.C. § 524 — reaffirmation requirements and rescission.
See how this applies to you
Source reference: U.S. Courts Bankruptcy Basics Glossary. This page provides a plain-English explanation, not a quotation of the glossary.
Need advice about your actual situation?
A definition cannot replace a review of your finances, property, debts, and goals. Stewart Law serves bankruptcy clients throughout Florida.
Request a consultationGeneral legal information only. Not legal advice. Laws and procedures can change. Contacting the firm does not itself establish an attorney-client relationship.
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