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 West Virginia, as in other states, bankruptcy law permits individuals to discharge certain debts to alleviate financial distress. However, if a debtor wishes to retain certain secured assets, such as a home or vehicle, they may opt for a reaffirmation agreement during the bankruptcy process. A reaffirmation agreement is a voluntary contract between the debtor and the creditor that allows the debtor to continue making payments on the debt and retain the property. The terms of the agreement are typically similar to the original contract. To enter into a reaffirmation agreement, the debtor must be current on their payments and have sufficient bankruptcy exemptions to cover the equity in the property. The agreement must be filed with the bankruptcy court and approved by a judge, who will assess whether the reaffirmation is in the debtor's best interest and does not impose an undue hardship. It's important for debtors to consult with an attorney to understand the implications of reaffirming a debt, as it will not be discharged in the bankruptcy and the debtor will remain legally obligated to pay it.