What Does Reaffirmation of Debt Mean?

Edited by Hannah Locklear

People who file for bankruptcy are typically in extreme financial distress. They may be unable to work, facing significant medical debts, or dealing with a substantial reduction of their ordinary income. Usually, an individual in bankruptcy sees no way out of their current situation aside from completely eliminating their debts.

Individuals can file for two forms of bankruptcy — either Chapter 7 or Chapter 13. Under a Chapter 7 bankruptcy, the court discharges all of an individual’s unsecured debts. However, they may lose their home, vehicle, or other property, depending on the circumstances.

A Chapter 13 bankruptcy is a reorganization of existing debts. People who file for a Chapter 13 bankruptcy either don’t meet the financial requirements of a Chapter 7 bankruptcy or may want to keep the property they own from their creditors.

A debt reaffirmation can help people who file for a Chapter 7 bankruptcy keep their property, like their homes and vehicles, if they still have an outstanding mortgage or car loan.

What does a reaffirmation of debt do?

A reaffirmation of debt is an agreement between an individual filing for Chapter 7 bankruptcy and their creditors, under which the individual keeps the loan out of the bankruptcy process and agrees to fulfill their repayment obligations according to the original loan contract.

Essentially, the borrower notifies the creditor that they are filing for a Chapter 7 bankruptcy but want to keep the specific loan out of the legal process. They’ll provide a reaffirmation of debt to the creditor, reestablishing their agreement to pay the loan.

If the creditor agrees to the debt reaffirmation, the borrower will keep any secured property from the loan, like their vehicle or home. They must continue to make timely payments to the lender, and should they fail to act per their agreement, the creditor may sue them to seize the property and collect the remaining loan balance.

Who should file a reaffirmation of debt?

A reaffirmation of debt is helpful for individuals filing for bankruptcy who don’t want to lose their home or car. By filing a reaffirmation of debt, they can continue to make regular payments without fear of losing their residence or vehicle in the Chapter 7 bankruptcy process.

People who don’t have another place to live or require a vehicle for transportation should file a Reaffirmation Agreement, but before doing so, they should ensure they have the financial means to continue making regular payments to their lender.

If the filer doesn’t believe they’ll be able to keep up with their payments, they should not file a debt reaffirmation. Instead, finding another place to live or a vehicle that aligns with their financial means is best.

What are the benefits of a reaffirmation of debt?

There are several benefits to reaffirming a debt.

First, you’ll be able to keep the property you have for your personal needs. You won’t need to look for another place to live or a car to drive, and as you continue to make payments, you’ll build up more equity in the property.

You’ll improve your credit score by making regular, timely payments on reaffirmed loans. Improving your credit score is a significant benefit since your credit report will take a considerable beating in the first few years following a bankruptcy.

Finally, a reaffirmation of debt ensures that your creditors can’t seize your property following the discharge of your bankruptcy. Since you voluntarily reaffirmed your debt, there’s nothing that allows them to do so as long as you keep making your payments on time.

What are the disadvantages of a reaffirmation of debt?

The main drawback of reaffirming debt is that you will remain liable for the loan, even after bankruptcy. If something happens and you can’t abide by the loan terms, the creditor can seize your property and sue you for the remaining balance.

Individuals who file for bankruptcy cannot file for a second bankruptcy in a set period, so you’ll have little defense against the creditor if you cannot make payments. Your creditors will likely be able to obtain a judgment against you, garnishing your wages or freezing your bank account. They’ll also be able to take your property.

What does a reaffirmation of debt include?

A reaffirmation of debt is a simple agreement between you and your lender. In the document, you agree to be fully liable for repaying the obligation. Typically, the amount you owe remains the same, regardless of your bankruptcy status.

In return for the debt reaffirmation, the lender agrees to allow you to keep your property as long as you continue making your payments.

How to respond to debt collectors

If you have debt collectors breathing down your neck, you’re not alone.

Millions of Americans have their debt accounts sent to collections each year. The trick is to know how to respond when a debt collector contacts you or takes you to court.

Here are some ways to respond to debt collectors to get them off your back:

• Send a Debt Validation Letter. When a debt collector first reaches out, you should respond by requesting that they verify the debt. You can do this by sending a Debt Validation Letter. This forces the collector to prove the debt is legitimate. They must verify that the amount is correct, that you actually owe the debt, and that they have rights to collect it from you. If they cannot validate the debt, they should cease contact until they do.


• Respond to a debt lawsuit lawsuit. If you’ve been sued by a debt collector, don’t lose hope. You can increase the chances of winning your case by simply responding. Respond to a debt collection lawsuit by filing a written Answer with the court and sending a copy to the opposing attorney. In your Answer, respond to each claim against you and assert your affirmative defenses. Be sure to file your Answer before your state’s deadline to avoid losing by default judgment.


• Settle your debt. If you know you owe the debt in question, you can reach out to the collector at any stage of the collection process to negotiate a settlement offer. Most debt collectors are willing to settle for less than you originally owed. Send an offer for free with SoloSettle, after filing your Answer into the case, to start the settlement negotiations process.

SoloSuit can help you draft each of these documents and beat debt collectors at their own game. Check out this video to learn more:

Fight off feisty debt collectors with SoloSuit.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.

• Absolute Resolutions Investments LLC
• Accredited Collection Services
• Alliance One
• Amcol Clmbia
• American Recovery Service
• Asset Acceptance LLC
• Asset Recovery Solutions
• Associated Credit Services
• Autovest LLC
• Cach LLC
• Cavalry SPV I LLC
• Cerastes LLC
• Colinfobur
• Covington Credit
• Crown Asset Management
• CTC Debt Collector
• Cypress Financial Recoveries
• Delanor Kemper & Associates
• Eagle Loan of Ohio
• Educap
• Estate Information Services
• FIA Card Services
• Forster & Garbus
• Freshview Solutions
• Fulton Friedman & Gullace LLP
• Harvest Credit Management
• Howard Lee Schiff
• Hudson & Keyse LLC
• Integras Capital Recovery LLC
• Javitch Block
• Jefferson Capital Systems LLC
• LVNV Funding
• Mannbracken
• Mariner Finance
• Medicredit
• Michael J Adams PC
• Michael J Scott
• Midland Funding LLC
• Mullooly, Jeffrey, Rooney & Flynn
• Mountain Land Collections
• MRS Associates
• National Collegiate Trust
• Nationstar Foreclosure
• Northstar Capital Acquisition
• NCEP LLC
• NRC Collection Agency
• OneMain Financial
• Palisades Collection LLC
• Pallida LLC
• Paragon Revenue Group
• Pinnacle Collections Agency
• PMAB LLC
• Portfolio Recovery Associates
• Provest Law
• PYOD LLC
• Reunion Student Loan Finance Corporation
• Revenue Group
• Regents and Associates
• RSIEH
• Salander Enterprises LLC
• Second Round Sub LLC
• Security Credit Services
• Sherman Financial Group
• Suttell and Hammer
• T-Mobile
• Transworld Systems
• Tulsa Teachers Credit Union
• UCB Collection
• Velo Law Office
• Velocity Investments
• Waypoint Resource Group
• Weinberg and Associates
• Wolpoff & Abramson

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

• Bank of America
• Capital One
• Chase
• Credit One Bank
• PayPal Synchrony Card
• SYNCB/PPEXTR
• Synchrony Bank
• Target National Bank
• Wells Fargo

Going to Court for Credit Card Debt — Key Tips

How to Negotiate Credit Card Debts

How to Settle a Credit Card Debt Lawsuit — Ultimate Guide

Get answers to these FAQs

Need more info on statutes of limitations? Read our 50-state guide.

Why do debt collectors block their phone numbers?

How long do debt collectors take to respond to debt validation letters?

What are the biggest debt collector companies in the US?

Is Zombie Debt Still a Problem in 2019?

SoloSuit FAQ

If a car is repossessed, do I still owe the debt?

Is Portfolio Recovery Associates Legit?

Is There a Judgment Against Me Without my Knowledge?

Should I File Bankruptcy Before or After a Judgment?

What is a default judgment?— What do I do?

Summoned to Court for Medical Bills — What Do I Do?

What Happens If Someone Sues You and You Have No Money?

What Happens If You Never Answer Debt Collectors?

What Happens When a Debt Is Sold to a Collection Agency

What is a Stipulated Judgment?

What is the Deadline for a Defendants Answer to Avoid a Default Judgment?

Can a Judgement Creditor Take my Car?

Can I Settle a Debt After Being Served?

Can I Stop Wage Garnishment?

Can You Appeal a Default Judgement?

Do I Need a Debt Collection Defense Attorney?

Do I Need a Payday Loans Lawyer?

Do student loans go away after 7 years? — Student Loan Debt Guide

Am I Responsible for My Spouses Medical Debt?

Should I Marry Someone With Debt?

Can a Debt Collector Leave a Voicemail?

How Does Debt Assignment Work?

What Happens If a Defendant Does Not Pay a Judgment?

How Does Debt Assignment Work?

Can You Serve Someone with a Collections Lawsuit at Their Work?

What Is a Warrant in Debt?

How Many Times Can a Judgment be Renewed in Oklahoma?

Can an Eviction Be Reversed?

Does Debt Consolidation Have Risks?

What Happens If You Avoid Getting Served Court Papers?

Does Student Debt Die With You?

Can Debt Collectors Call You at Work in Texas?

How Much Do You Have to Be in Debt to File for Chapter 7?

What Is the Statute of Limitations on Debt in Washington?

How Long Does a Judgment Last?

Can Private Disability Payments Be Garnished?

Can Debt Collectors Call From Local Numbers?

Does the Fair Credit Reporting Act Work in Florida?

The Truth: Should You Never Pay a Debt Collection Agency?

Should You Communicate with a Debt Collector in Writing or by Telephone?

Do I Need a Debt Negotiator?

What Happens After a Motion for Default Is Filed?

Can a Process Server Leave a Summons Taped to My Door?

Learn More With These Additional Resources:

Need help managing your finances? Check out these resources.

How to Make a Debt Validation Letter - The Ultimate Guide

How to Make a Motion to Compel Arbitration Without an Attorney

How to Stop Wage Garnishment — Everything You Need to Know

How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)

Defending Yourself in Court Against a Debt Collector

Tips on you can to file an FDCPA lawsuit against a debt collection agency

Advice on how to answer a summons for debt collection.

Effective strategies for how to get back on track after a debt lawsuit

New Hampshire Statute of Limitations on Debt

Sample Cease and Desist Letter Against Debt Collectors

The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah

West Virginia Statute of Limitations on Debt

What debt collectors cannot do — FDCPA explained

Defending Yourself in Court Against Debt Collector

How to Liquidate Debt

Arkansas Statute of Limitations on Debt

Youre Drowning in Debt — Heres How to Swim

Help! Im Being Sued by My Debt Collector

How to Make a Motion to Vacate Judgment

How to Answer Summons for Debt Collection in Vermont

North Dakota Statute of Limitations on Debt

ClearPoint Debt Management Review

Indiana Statute of Limitations on Debt

Oregon Eviction Laws - What They Say

CuraDebt Debt Settlement Review

How to Write a Re-Aging Debt Letter

How to Appear in Court by Phone

How to Use the Doctrine of Unclean Hands

Debt Consolidation in Eugene, Oregon

Summoned to Court for Medical Bills? What to Do Next

How to Make a Debt Settlement Agreement

Received a 3-Day Eviction Notice? Heres What to Do

How to Answer a Lawsuit for Debt Collection

Tips for Leaving the Country With Unpaid Credit Card Debt

Kansas Statute of Limitations on Debt Collection

How to File in Small Claims Court in Iowa

How to File a Civil Answer in Kings County Supreme Court

Roseland Associates Debt Consolidation Review

How to Stop a Garnishment

Debt Eraser Review

Do Debt Collectors Ever Give Up?

Can They Garnish Your Wages for Credit Card Debt?

How Often Do Credit Card Companies Sue for Non-Payment?

How Long Does a Judgement Last?

​​How Long Before a Creditor Can Garnish Wages?

How to Beat a Bill Collector in Court