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 Massachusetts, reaffirmation agreements in bankruptcy allow debtors to keep certain secured assets, such as a home or car, by agreeing to continue paying the debt associated with those assets. When a debtor files for bankruptcy, they can choose to reaffirm a debt, which involves entering into a new contract with the creditor on the same or modified terms. This agreement must be filed with the bankruptcy court and approved by a judge. To be eligible for reaffirmation, the debtor must be current on their payments and have sufficient bankruptcy exemptions to cover the equity in the property. It's important to note that reaffirmation is a voluntary process and debtors are not required to reaffirm any debts. Debtors should consider the implications carefully and may want to consult with an attorney to understand the legal and financial consequences of entering into a reaffirmation agreement.