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 filed within sixty (60) days after the first date set for the meeting of creditors.

An original and executed reaffirmation agreement filed with the Clerk no later than 30 days following entry of the discharge order is enforceable without hearing or court order, if the agreement is accompanied by a declaration or an affidavit of the debtor's attorney. The reaffirmation agreement must be filed on form 240. If a reaffirmation agreement is filed without an attorney's declaration or affidavit, or creates a presumption of undue hardship, a hearing is required. You must appear in person at the hearing. The judge will ask you questions to determine whether the reaffirmation agreement imposes an undue burden on you or your dependents and whether it is in your best interests. Reaffirmed debts are not dischargeable.

Reaffirmation agreements are strictly voluntary. They are not required by the Bankruptcy Code or other state or federal law. You can voluntarily repay any debt instead of signing a reaffirmation agreement, but there may be valid reasons for wanting to reaffirm a particular debt.

Since a reaffirmation agreement takes away some of the effectiveness of your discharge, legal counsel is advisable before agreeing to a reaffirmation.

© Alex J. Llorente  2012