What is a reaffirmation agreement?

A reaffirmation agreement is an agreement by which a bankruptcy debtor becomes legally obligated to pay all or a portion of an otherwise dischargeable debt. Such an agreement must generally be entered into within sixty (60) days after the first date set for the meeting of creditors. The agreement must be filed with the court. A reaffirmation agreement must be filed on (Form B-240) and be accompanied by a Reaffirmation Agreement Cover Sheet (Form B27). If the reaffirming debtor is represented by an attorney, and the agreement complies with 11 United States Code § 524(c), no hearing for approval of such an agreement is generally necessary. If the reaffirming debtor is not represented by an attorney, the court will schedule a hearing. You must appear in person at the hearing. The judge will ask questions to determine whether the reaffirmation agreement imposes an undue hardship on you or your dependants and whether it is in your best interests. Since reaffirmed debts are not discharged, the bankruptcy court will normally approve reaffirmation agreements only when the debt is secured by collateral that is important to your daily activities. Reaffirmation agreements are strictly voluntary. They are not required by the Bankruptcy Code or other state or federal law.