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 Virginia, 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. This agreement must be on terms that are agreeable to both parties and must be approved by the bankruptcy court. To reaffirm a debt, 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 a voluntary process and debtors are not required to reaffirm any debts. An attorney can provide guidance on whether reaffirmation is a wise decision based on individual circumstances and can help ensure that the reaffirmation agreement is properly executed and filed with the court.