Reaffirmation Agreements

Understanding 11 U.S.C. Section 524(c) -- keeping secured debt through bankruptcy

About This Site

A reaffirmation agreement is a legally binding contract between a debtor and a creditor that keeps a specific debt alive through bankruptcy. Under Section 524(c), when you reaffirm a debt, you agree to remain personally liable for it even after your discharge. This is most commonly used for car loans and sometimes mortgages.

This site will explain when reaffirmation makes sense, when it does not, and what the legal requirements are. We will cover the court approval process, the presumption of undue hardship, the 60-day rescission period, and what happens if you sign a reaffirmation agreement and later cannot make the payments.

Reaffirmation is one of the most consequential decisions in a Chapter 7 case, and many debtors sign these agreements without fully understanding the implications. We will provide the information you need to make an informed choice about whether to reaffirm, redeem, or surrender secured property.

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Related Resources

The Discharge Injunction -- How Section 524 permanently bars creditor collection after discharge

What Is Chapter 7? -- Plain-English guide to Chapter 7 liquidation bankruptcy

Nondischargeable Debts -- Which debts survive bankruptcy under Section 523(a)

Federal Rules Committee

This research supports Suggestion 26-BK-3 to the Advisory Committee on Bankruptcy Rules

Proposing automated Section 1328(f) discharge bar screening in federal bankruptcy courts