Should I reaffirm my debt?

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Short answer: Hell no. Reaffirmation agreements are in the best interest of the creditor, not the debtor.

In a reaffirmation agreement, the debtor chooses to become legally obligated again to pay in full the debt which would be discharged in bankruptcy filing. Reaffirmation agreements are voluntary and not required by the Bankruptcy Code or by law. Reaffirmation totally negates the fresh start provided by bankruptcy and most attorneys will advise against signing this type of agreement. Additionally, a judge that doesn’t believe the reaffirmation is in a debtor’s best interest may refuse to allow the agreement as binding.

Be very careful which debts you reaffirm. And don’t let a mortgage company bully you into signing a reaffirmation agreement, especially if you are underwater. If you are concerned about keeping your home or your car and are considering signing a reaffirmation agreement, contact a lawyer first. Each situation is different. Do not go back into debt for something that is clearly dischargeable in your bankruptcy.  As part of our assistance to debtor clients, we provide  advice and consultation on which, if any, debts should be reaffirmed and on what terms. These are strategic decisions made only in a client’s best interest and with their informed consent.

If you are still tempted to reaffirm a debt, contact Cossitt Law at (406) 752-5616 to set up a consultation. We are experts in consumer debt and bankruptcy and can make sure that things work out to your best advantage.

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