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? -
4 Credit Card Rewards Gimmicks Revealed
Credit card rewards programs are everywhere, but some are more rewarding than others. Learn to spot the "rewards" that can leave you feeling like a loser. -
Financial Risks That Don't Pay Off: The Cost Of Reckless Financial Behavior
Despite the recessions, citizens continue to take financial risks and spend outside of their means without fully appreciating the potential consequences for both themselves and the wider economy. -
10 Steps To Help Erase Errors On Your Credit Report
According to a study conducted by the Federal Trade Commission, one in four consumers identified errors on their reports that might affect their credit rating in 2013. -
Understanding Leverage Ratios
Large amounts of debt can cause businesses to become less competitive and, in some cases, lead to default. To lower their risk, investors use a variety of leverage ratios - including the debt, ... -
How To Break Your Bad Financial Habits
If the current level of economic growth is to be maintained and improved upon, citizens must play their part by practicing responsible spending and borrowing. -
How To Reduce Your Debts Without Spending Unnecessarily
While it is not possible to repay your debts without investing money into the process, you should avoid spending unnecessary sums of cash in the pursuit of a financially liberated future.
Free Annual Reports