A reaffirmation agreement is a deal that an individual makes with the court in order to promise to pay an outstanding debt. This is required when a person wants to repay a debt rather than have it discharged. There are some debts that can be discharged, but individuals may not want to opt for the discharge in fear of losing the possession.

For example, if you want to keep your car, rather than have the payments discharged and the car seized, then you can file a reaffirmation agreement with the court promising that you will repay the debt on the car in full. You are required to sign and file the reaffirmation agreement with the court where your bankruptcy procedure took place. Reaffirmation agreements are under special rules that must be followed closely.

They are also voluntary, meaning that they are not required by any other law or by the bankruptcy code. You should never feel obligated to pay the reaffirmation agreement if you don't want to, as your legal right to discharges is included with a bankruptcy. If you are considering filing a reaffirmation agreement then you may need to talk with your attorney first. With the right lawyer on your side, you can make an informed opinion on whether or not the reaffirmation agreement is the best way to go.

All reaffirmation agreements must be entirely voluntary and must not place too heavy of a burden on the family that is filing the agreement. If the payments are unaffordable or cause serious strain on the family unit, then the court may deny the agreement and compel the individual to take the discharge and forfeit the property.

Also, reaffirmation agreements must be in your best interests if you want them to be honored by the courts. Also, the agreement can be canceled any time before the court issues your discharge or within 60 days after the agreement is filed with the court. Normally, the court will allow you to cancel based on whichever of these stipulations gives you the most time.

If you reaffirm a debt and then fail to pay it, you will owe the debt the same as if you never filed for bankruptcy. This means that the debt cannot be discharged and the creditor has the right to take action against you. The creditor can call, collect, or sue. If the creditor has a lien or mortgage on the property, then he or she can seize or repossess the property. The creditor also has the right to recover a judgment against you for failing to pay the reaffirmation agreement.

This is why reaffirmation agreements need to be taken seriously. It is essential to evaluate your capabilities to pay a debt before committing to take it on again. If you are currently in the midst of a bankruptcy and are considering a reaffirmation agreement, you need to carefully consider the consequences of the agreement before signing on.

Are you going to have the funds you need to cover the expenses? Is there a possibility that your income could dry up or that you could fall back into a financially difficult situation? If so, then contact an attorney at the firm today to learn more about your options. A strategic local attorney will be able to help you decide the best choices in your bankruptcy for your family and your financial well-being. An attorney can also help you to decide which bankruptcy chapter is best for you and work to achieve the financial freedom that you need to start fresh.