Reaffirmation Agreements: Chapter 7 Bankruptcy Attorney

What is a reaffirmation agreement?
Should you choose to reaffirm a secured debt as opposed to surrender it, what you are doing is keeping the asset and continuing the normal payments on the debt. When your secured creditor's get notice that you are reaffirming the debt that you have with them they will send a reaffirmation agreement for you to sign. This is essentially a contract between you and the creditor reaffirming your relationship to the court. Once you sign the reaffirmation agreement, it is sent back to the creditor and they file it with the court. If on the reaffirmation agreement, you report that your income minus your expenses gives you a negative disposable income, the Presumption of Undue Hardship arises and will be noted by the court.