How Does a Reaffirmation Agreement Work

Reaffirmation agreements are strictly voluntary. A debtor is not required to reaffirm any of his or her debts. If a debtor signs a reaffirmation agreement, the debtor agrees to pay a debt that otherwise might be discharged in his or her bankruptcy case.

Does reaffirming help credit?

Reaffirming Helps Rebuild Your Credit So timely payments won’t help you establish a good credit history after bankruptcy. If you reaffirm the loan, your lender will continue reporting payments.

What happens after reaffirmation agreement?

A reaffirmation agreement is where you agree to pay a debt even though you could have eliminated the debt in your bankruptcy case. When you reaffirm a debt, you continue to be legally responsible for paying it back. This gives the creditor some legal rights.