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 Ohio, as in other states, bankruptcy law permits individuals to discharge certain debts, but it also allows for the option of reaffirmation. Reaffirmation is a legal process in which a debtor chooses to keep paying a specific debt, such as a mortgage or car loan, to retain the property securing the debt. This involves creating a new contract with the creditor, which must be agreed upon by both parties and approved by the bankruptcy court. To reaffirm a debt, the debtor must be up-to-date on payments and must have sufficient bankruptcy exemptions to cover the equity in the property. It's important to note that reaffirmation can have significant financial implications, and debtors are often advised to consult with an attorney before entering into a reaffirmation agreement to ensure it is in their best interest and they fully understand the legal obligations they are committing to.