Individuals who file for bankruptcy protection under Chapter 7 typically have large consumer debt in the form of credit card bills, unsecured loans, utility bills and various expenses associated with unsecured assets. In may situations you may wish to keep specific secured assets such as a vehicle, home or furniture. This can be accomplished by reaffirming your commitment to continue paying for these debts under the current terms of your agreement with the creditor or under new terms if the creditor will negotiate. The purpose of the "reaffirmation Agreement" is to reaffirm that you will continue to pay for the assets and prohibit you from filing bankruptcy to discharge the debt for at least six years.

Any decision to reaffirm a debt should not be taken lightly. If you fall behind in payments on debt which has been reaffirmed, you will face harassing phone calls from creditors and possibly legal action which could result in your wages being garnished and/or the property being repossessed. The purpose of a Chapter 7 bankruptcy is to allow a fresh start free of overly burdensome debt. Reaffirming debt without the certainty of being able to make the payments may not be the best decision. If you are considering reaffirming a debt, you should consult a bankruptcy attorney to discuss your options before making that decision.

- Richard V. Stokan, Jr.