Bankruptcy law generally allows you to break your contracts with creditors to help you get out of debt. But sometimes you may want to keep a home mortgage or car loan as you work to recover from your bankruptcy. Reaffirmation is a process in bankruptcy where you agree to remain responsible for the debt or loan so that you can keep the property (house or car) that is securing your repayment of the loan.

In reaffirmation, you and the creditor enter into a new contract—usually on the same terms—and submit it to the bankruptcy court for approval. You will have to be current on your payments of the loan, and you must be eligible for a bankruptcy exemption that will allow you to protect all of the equity in the property securing the loan you want to reaffirm.

In Illinois, reaffirmation during bankruptcy is a legal process that allows a debtor to agree to continue paying a specific debt, such as a home mortgage or car loan, in order to retain the property securing the loan. This involves creating a new contract with the creditor, often on the same terms as the original agreement, and submitting it to the bankruptcy court for approval. To be eligible for reaffirmation, the debtor must be current on the loan payments and must have sufficient bankruptcy exemptions to cover the equity in the property. It's important to note that reaffirmation is voluntary and not required by bankruptcy law. Debtors should consider the implications carefully, as reaffirming a debt means it will not be discharged in the bankruptcy and they will remain legally responsible for repaying it. An attorney can provide guidance on whether reaffirmation is a wise choice based on individual circumstances.