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In bankruptcy, a reaffirmation is an agreement that a debtor and a creditor enter into after a debtor has filed for bankruptcy, in which the debtor agrees to repay all or part of an existing debt after the bankruptcy proceedings are over and the property subject to the reaffirmation is not subject to partition in the ...
Agreeing to repay the excess loan amount in ance with the terms of the promissory note is called ?reaffirmation.? You can reaffirm an excess loan amount by signing a reaffirmation agreement with your loan servicer.
The reaffirmation process lets you remain responsible for a debt, such as a car payment, and keep the car or other "collateral" property securing the debt. You and the lender enter into a new contract?usually on the same terms?and submit it to the bankruptcy court.
Creditors holding a security interest that they want to protect post-bankruptcy will request that a Reaffirmation Agreement is signed. They will prepare it and provide it to your attorney's office for review.
If you decide to enter into a reaffirmation agreement, you must do so before you receive your discharge.
Reaffirming a debt informs the lender that you intend to continue to pay the loan. Generally, the lender will continue to report the loan and all payments made on that loan to the credit reporting agencies, which may help improve your credit score after bankruptcy, provided timely payments are made on the loan.
For the debtor listed above, a case has been filed under chapter 7 of the Bankruptcy Code. An order for relief has been entered. This notice has important information about the case for creditors, debtors, and trustees, including information about the meeting of creditors and deadlines.