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What is a Reaffirmation Agreement?

A reaffirmation agreement is an agreement you sign confirming that you wish to keep the asset, that you will continue to make the payments. The effect is that the subject debt will not be wiped out in your bankruptcy case. If you do not reaffirm, you will no longer be liable for the debt to the extent such debt is unsecured. Thus, if you need to, in the case of vehicles, a number of creditors are taking the position that if you do not reaffirm, they will repossess your car.

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