What Does It Mean When A New Jersey Bankruptcy Debtor "Reaffirms" A Debt

In a New Jersey Bankruptcy Case, secured creditors might retain some rights to seize property securing an underlying debt even after the New Jersey Bankruptcy Court enters a New Jersey Bankruptcy Discharge Order. In certain situations, if a New Jersey Bankruptcy Debtor wants to keep certain secured property - like a car, boat or business equipment - the New Jersey Bankruptcy Debtor may "reaffirm" the secured debt. A reaffirmation agreement is simply a negotiated Reorganization Plan with your creditor. Reaffirmation agreements are commonly signed in New Jersey Chapter 7 Bankruptcy cases, such as where a New Jersey Bankruptcy Debtor purchased a Home or a car and would like to keep it after the New Jersey Bankruptcy case is completed. Other New Jersey Bankruptcy Debtors want to maintain a credit card so that they can begin to reestablish their credit. Reaffirmation agreements are completely voluntary. The reaffirmation agreement is an agreement between the New Jersey Bankruptcy Debtor and the creditor. In the reaffirmation agreement, the New Jersey Bankruptcy Debtor is responsible for paying all or some of the money owed on a debt that might otherwise be discharged in the New Jersey Bankruptcy. In exchange for the New Jersey Debtor's agreeing to repay some or all of the debt, the creditor agrees not to repossess or take back the property if the New Jersey Bankruptcy Debtor still pays the debt (and performs any other conditions required under the reaffirmation agreement. New Jersey Bankruptcy Debtors sign reaffirmation agreements before the New Jersey Bankruptcy Court enters a New Jersey Bankruptcy Discharge Order and the reaffirmation agreement gets filed with the New Jersey Bankruptcy Court.