After declaring bankruptcy, some debtors may be interested in setting up a reaffirmation agreement if it is in their best interest. This is an agreement that would be set up between you and your creditors. It is a contractual agreement which states that you will pay back the money owed to the creditors despite the fact that you have filed for bankruptcy. Through this agreement, you will be able to keep your property and it will stay in your possession. After the payments are made, the creditors, for their part, will agree not to repossess your property or otherwise take it back.

This can be very advantageous for people who are filing for bankruptcy, but it is important to make sure that this decision would be best for you before you enter into such an agreement with your creditors. In order to accomplish this objective, it is highly recommended that you discuss the situation with a lawyer, not only to make sure that this agreement is in your best interest, but also that your rights are adequately protected in such a contract. If you are not able to get an attorney to represent you in your reaffirmation agreement, the contract will need to be approved by your bankruptcy judge. The judge will be in charge of asking you questions in order to determine whether or not the reaffirmation agreement will be undue stress on you and your beneficiaries.

A reaffirmation agreement is not discharged. Due to this, most judges will only sign off on such a contract when the item that is being discussed is imperative to your every day life. One such secured debt example would be a car that you use to get back and forth from work every day. These contracts are completely voluntary and individuals do not need to take part in them in order to file for bankruptcy.