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John F. Roberts, Esquire Jeanne E. Hovenden, Esquire
Serving all of the Greater Richmond, Virginia, Metropolitan and Tri-cities Area, and Surrounding Counties 7459 Old Hickory Drive Mechanicsville, Virginia 23111 (804) 746-4000 Richmond Area (800) 388-8298 Outside of Richmond Area (804) 746-4146 Facsimile |
The Bankruptcy Process
Reaffirmation Agreements
A debtor may keep property that is subject to the liens of secured creditors as long as the debtor remains current on such obligations or reaches an agreement with the secured creditor. A debtor may “reaffirm” his obligations to a secured creditor who holds a lien on a house, car or other significant item but is not always required to do so. A reaffirmation agreement must be in writing, signed by both the debtor and his attorney, and must be filed with the bankruptcy court prior to the entry of the order granting the debtor’s discharge. A debtor may rescind a reaffirmation agreement within 60 days after signing the agreement. A debtor may also free or “redeem” property from a lien by paying the secured creditor the fair market value of the property in a lump sum. The bankruptcy judge can set the value if the parties do not agree.