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Does Bankruptcy Mean I Can Keep My Stuff Without Paying?

Throughout life a person can accumulate a lot of things. But when the time comes to repay the debt that has also accumulated when acquiring these things too many people find themselves unable to pay. If you have more debt than you can manage, there are solutions. One solution is to file for bankruptcy, and eliminate some of your debt so that your money is freed up to pay for the things you need. When you file bankruptcy you are allowed to keep your items, but there are some restrictions on what you can keep and there are also rules you must follow in order to hold on to your stuff.

The way many people choose to keep certain things when they file bankruptcy is to reaffirm the debt. In order to reaffirm a debt, you have to enter into a reaffirmation agreement. The agreement must meet certain requirements, and after it is filed in your case you need to understand what it means to have reaffirmed a debt. The following is a short list of the impact of reaffirming debt in bankruptcy:

  • A reaffirmation agreement is the same things as entering into a new loan contract. The document will state the terms of the agreement, and if any new terms were reached when negotiating the reaffirmation those will be included in the agreement. If you did not reach any new terms, such as a lower interest rate or longer repayment period, the agreement will restate the original loan terms.
  • The agreement is filed in your case and means the debt reaffirmed will not be discharged in your bankruptcy. The effect of not discharging the debt is that after your case is over the debt remains due.
  • Because reaffirmed debt is still due even after your case is over, the creditor can call you to collect if you fail to make a payment. The lender also has the authority to file a lawsuit to collect the unpaid debt and doing so is not a violation of the bankruptcy discharge.

Deciding which debt to reaffirm can be a difficult decision. The most popular forms of debt reaffirmed are auto and home loans. You can also reaffirm any other debt you have, but it is not advisable to do so unless there is collateral attached to the loan that you wish to keep. Even then, depending on the type of collateral, you can still keep your stuff without reaffirming if you continue to make voluntary payments to the creditor. We can help you make rational choices about what to reaffirm and what to give back to the lender, so you get the most benefit from your bankruptcy.

For more information about reaffirming debt in bankruptcy, contact us at We will help by coming up with solutions that work for you.



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