What Does It Mean to Reaffirm a Debt in Chapter 7 Bankruptcy?

Reaffirming a debt in Chapter 7 bankruptcy means agreeing to remain liable for a specific debt, such as an auto loan, even after filing. This is common when a debtor wants to keep their vehicle and continue making payments. The lender sends a reaffirmation agreement, which, when signed, keeps the debt in good standing and can have a positive impact on the credit report. However, reaffirming the debt also means the debtor remains responsible for it, and if they miss payments, the vehicle could be repossessed, potentially resulting in a deficiency.