reaffirmation agreement

A reaffirmation agreement is a legal contract where a debtor agrees to continue paying a specific debt, like a loan or credit card, even after declaring bankruptcy. This agreement allows the debtor to keep certain assets, such as a car or house, secured by the debt. It must be voluntary, fair, and approved by the bankruptcy court to ensure the debtor understands the commitment. Reaffirmation can help maintain important financial relationships, but it also means the debtor remains responsible for paying that debt outside of the bankruptcy protections.