A reaffirmation in bankruptcy is an agreement that you can choose to sign with a creditor that will prevent that debt from being discharged in bankruptcy. Typically, when a person files for bankruptcy under Chapter 7, they are looking to discharge all or most of their debts. However, in some cases, a person may want to retain a debt while filing for Chapter 7.

Deciding to sign a reaffirmation agreement is something that you should discuss with your attorney. But, here are some of the pros and cons to signing a reaffirmation agreement.


You can typically negotiate better terms when signing a reaffirmation agreement. For example, you may need fewer payments, lowered interest rate, or a reduced amount to repay the creditor. So, if you believe that you are financially able to pay off the balance and you can get better terms, a reaffirmation may be a good option.

A creditor may require that you sign one. Or, it can be the best way to keep property or collateral. So, by sticking to your payments, you avoid the sale of your property by a bankruptcy trustee.

Remember, you should weigh all your options and speak with your attorney before signing anything.


The major disadvantage of reaffirming a debt is that you remain in debt after your bankruptcy ends. You are also still tied to payments, even if the property is damaged or destroyed. In the event you miss a payment, the creditor can take the property, sell it, and bill you for any amount left over that you owe.

Also, you cannot enter into a reaffirmation agreement if you are already behind on any payments.

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