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 Wyoming, 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 process called reaffirmation. Reaffirmation involves agreeing to continue paying a specific debt despite the bankruptcy. The debtor and creditor create a new contract, often with similar terms to the original agreement, and submit it to the bankruptcy court for approval. To reaffirm a debt, the debtor must be up-to-date on loan payments and must have sufficient bankruptcy exemptions to cover the equity in the property they wish to keep. It's important to note that reaffirmation is a voluntary process and not required by bankruptcy law. Debtors considering reaffirmation should consult with an attorney to understand the legal implications and ensure that the decision aligns with their financial recovery plan.