Reaffirmation Agreement

• A reaffirmation agreements is a waiver of your right to discharge a particular debt in bankruptcy. A discharge is an order declaring that you are no longer legally responsible for certain debts. Accordingly, if you sign and file a reaffirmation agreement, the lender whose debt you reaffirm may hold you personally responsible for any unpaid balance if you default following your bankruptcy. Bankruptcy law requires you to establish that reaffirming a debt will not impose an undue hardship on you.
  
  

Chapter 13

• If you filed a Chapter 13 bankruptcy, you generally have nothing to worry about if you didn't file your reaffirmation agreement. Chapter 13 bankruptcy prevents creditors from pursuing collection remedies, such as foreclosure and repossession, while you're in your bankruptcy case. If you successfully complete you Chapter 13 plan, you will continue to be protected from collection efforts unless you, again, default on your loans. A Chapter 13 can end in as little as three years or as many as five years. During this time, you must make regular payments to your creditors and the bankruptcy court to keep your case going and protect your property.
  
  

Chapter 7

• Failing to file your signed reaffirmation agreement while in a Chapter 7 can have mixed results. Following a Chapter 7, you generally will no longer be liable for the debt you failed to reaffirm. This doesn't necessarily mean you should stop paying the debt. If you want to have a chance of keeping the property securing the debt, you must keep paying the loan because Chapter 7 does not prevent creditors from exercising their right to seize and sell your property pursuant to their lien. If you wish to let the property go, stop paying and let the lender come get it. Note that even if you keep paying the loan, the lender may still seize the property at its discretion because the lender may view bankruptcy itself as a default of your loan terms.
  
  

Motion

• If you mistakenly failed to file your signed reaffirmation agreement, it isn't necessarily the end of the world. It's possible to have a closed bankruptcy case reopened with a court approved motion to reopen. The decision to reopen rests squarely within the bankruptcy court's discretion; accordingly, you always run the risk of having the court deny the motion. Nonetheless, it is an option.