Reaffirmation
Definition of 'Reaffirmation'An agreement made between a debtor and a creditor to repay some or all of a debt. Reaffirmations are made on a purely voluntary basis by the debtor. The bankruptcy code stipulates that the debtor's attorney must file a statement with the court affirming that he or she can repay the debt without incurring further personal financial harm. |
|
Investopedia explains 'Reaffirmation'Reaffirmations cannot legally require the debtor to repay the debt. Lenders have no real leverage from them, and can only rely on the good faith intent of the debtor to repay the debt. This type of arrangement is prohibited under Chapter 13 Wagearner plans. |
Related Definitions
Articles Of Interest
-
A Lifeline For Those Drowning In Debt
Don't wait to be saved, find out where the lifesaving devices are and hang on tight! -
Life After Bankruptcy
Find out what you have to look forward to after filing for Chapter 7 or 13. -
Saving Your Home From Foreclosure
Learn the tactics you can use to prevent your home from being repossessed. -
Changing The Face Of Bankruptcy
A 2005 law attempts to unmask fraudulent debtors and still save those who are struggling. Will it affect you? -
Stop Keeping Up With The Joneses - They're Broke
Conspicuous consumption could be robbing you of future wealth. -
What's On A Consumer Credit Report?
A look at the various components and considerations that go into one's credit report and credit score. -
Bloated Budget? How To Trim The Fat
Blood, sweat and tears should belong in the gym, but your money deserves some training time too. -
Shuffle Away Your Debt With Balance Transfers
This option can save you big bucks, but only if you watch out for rates and fees. -
Outfox The Debt Collector's Hounds
Dealing with a collection agency is scary if you don't know your rights. We help you take back the power. -
A Guide To Debt Settlement
Find out how you can negotiate your way to a lower debt load by paying up front.
Free Annual Reports