Reaffirmation Agreements: Keeping Secured Debt After Chapter 7
A reaffirmation agreement is a voluntary contract to remain legally liable on a debt that Chapter 7 would otherwise discharge — most commonly a car loan. It trades away discharge protection for the right to keep the collateral and the loan, so the rules require real scrutiny before it binds.
The formal requirements
Under § 524(c), the agreement must be signed before discharge, filed with the court, and accompanied by an attorney's certification that it doesn't impose undue hardship — or approved by the judge at a hearing if the numbers show the payment isn't affordable.
The risk being accepted
Reaffirm and later default, and the lender can repossess, sell, and sue you for the deficiency — the exact liability the discharge would have erased. That's why the affordability math matters more than the desire to keep the car.
Alternatives: ride-through and redemption
In many cases filers simply keep paying without reaffirming — the 'ride-through' — keeping the car as long as payments continue while retaining discharge protection if things go wrong. Redemption (paying the car's current value in a lump sum) is the third path for vehicles worth far less than the loan.
Exemption amounts and rule thresholds change on statutory schedules. See our monthly rule reports for the current figures with citations to the official sources.
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Bankruptcy.AI is a technology platform, not a law firm, and does not provide legal advice. Majors Law Group, P.C. is a separate, independent law firm. This page is general information and is not legal advice; outcomes depend on your specific facts.