reaffirmation agreement credit report

Reaffirming Debt and Reporting on Your Credit

When you #reaffirm a debt, you agree that you will still owe the debt after your bankruptcy case ends. Both the creditor’s lien on the collateral (which gives the creditor the right to take the property if you fail to pay as agreed) and your liability for the debt under the original contract survive the bankruptcy.

#Advantages to Reaffirmation

Reaffirmation provides a sure way to keep collateral as long as you abide by the terms of the reaffirmation agreement and keep up your payments. As long as you stay current on the payment, the lender won’t be able to take back the property.

#Disadvantages to Reaffirmation

Because reaffirmation leaves you personally liable for the debt, you can’t walk away from the debt after bankruptcy. If you default on the loan after your bankruptcy then you will still be legally bound to pay the deficiency balance when the creditor repos the car and sells it.

Credit Reporting

Some creditors will continue to report your payments if you reaffirm your debt however not all will do so. Make sure you confirm with the creditor how they will report on your credit if you reaffirm the debt.



Saedi Law Group are experienced Georgia bankruptcy lawyers who have been helping Georgians file bankruptcy for over 19 years. We have filed thousands of bankruptcy cases here in Georgia and are in court every day fighting for our client’s rights against creditors. If you are currently struggling with overwhelming debt, or feel your financial situation will be severely stressed in the coming weeks, now is the best time to start looking at all options available to you.


Saedi Law Group offers a free, no obligation consultation with an experienced attorney (not a paralegal) who will review your specific situation and advise you about your options for moving forward. Our team is passionate about our work and we take it very seriously. Please contact us today at (404) 919-7296 or to learn about what you can do to protect your future.

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