Function

• A reaffirmation agreement allows a debtor to keep property with an outstanding debt provided the debtor makes payments on time in the future.
  
  

Types

• Technically, any secured debt (loan attached to specific property) is subject to reaffirmation in bankruptcy. The most common types of debts reaffirmed in bankruptcy are those associated with homes and cars.
  
  

Time Frame

• A reaffirmation agreement with a creditor is usually entered into during the initial phase of bankruptcy, typically within 90 days of initiating a case.
  
  

Benefits

• Through a reaffirmation agreement you are able to keep select items of property (again, likely your home and automobile) and still obtain a discharge of most of your other debts.
  
  

Warning

• Keep in mind that bankruptcies are complex cases, particularly those involving a reaffirmation agreement. Consider hiring an attorney to represent you to ensure your rights and interests are protected.