Reaffirmation

When someone files Chapter 7 bankruptcy, there are some debts that they may wish to repay on their own instead of having the court resolve it. This is called reaffirmation. Reaffirmation is a special payment plan with the court. For example, if a car loan is reaffirmed, the person keeps the car and makes payments under new terms. Without reaffirmation, the filer would be forced to give up their car.

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