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Debt Reaffirmation after bankruptcy - What does it mean?

Posted on: 08th May, 2008 06:08 am
we filed ch. 13 bk and it was discharged 8/07. i am delinquent on our second mortgage. i just pulled our credit report and it states under the second mortgage creditor: reaffirmation of debt. what does this mean? are they foreclosing?
never fear...i remember from your previous posts, etc. that you had worked out a modification on your second mortgage.

Debt reaffirmation means that you agreed in your bankruptcy to continue to pay that debt. as long as you can catch those payments up again and not go into default, they will not begin a foreclosure action. It's mainly signed when you're in Chapter 7.

it's important, however, that you make the overdue payments as soon as you can, and work to stay current. i doubt they will have much sympathy in this situation, as they've worked with you through the bankruptcy, etc.

i hope you'll be able to get caught up and stay that way soon.
Posted on: 08th May, 2008 06:17 am
Hello domsmom.

Agree with gmakerley. Debt reaffirmation agreement means you have agreed to pay off the amount of debt that you owe to the lender. In return the lender or the creditor promises that it will not be repossessed as long as you continue to pay the debt.

However, debt reaffirmation cannot take place in case of Chapter 13 bankruptcy. In this chapter, the lender would give you a payment plan to pay off the dues.

Let me know if you have any further questions.
Posted on: 08th May, 2008 06:29 am
I did not have a loan modification with my second mortgage. My first I do, not second. I am arrears with second, saw on credit report "Reaffirmation of debt". Have not received anything from 2nd mortgage company regarding this reaffirmation of debt?
Posted on: 08th May, 2008 06:39 am
debt reaffirmation means that at the end of your bankrupcy your attorney had you sign a document stating that you would agree to pay your second lender. he would of had to do this in order for you to keep your house.

i would recommend contacting your 2nd lender and speaking with the loss mitigation department. they should be willing to work with.

who is your second lender?
Posted on: 08th May, 2008 08:55 am
Here is a helpful article that explains debt reaffirmation.


[Link deactivated as per forum rules. Thanks.]
Posted on: 08th May, 2008 08:58 am

I did not sign any papers when our Ch. 13 was paid off and discharged last year.

State Farm Bank.
Posted on: 08th May, 2008 09:02 am
It would have been in your original bankruptcy paperwork. Can you get in touch with the attorney who originally filed your bankruptcy?
Posted on: 08th May, 2008 09:18 am
I work for attorneys. I can get online on the BK website and check my papers.
Posted on: 08th May, 2008 10:03 am
But what does it mean on my credit report when it says Reaffirmation of Debt? Are they foreclosing? Are they sending me something to sign? What does it mean?
Posted on: 08th May, 2008 10:13 am
Debt reaffirmation is just showing that you agreed to pay them. Since, it is on your credit it is counting as money that you owe and will have to pay. I hope this answers your quesiton?

I'm a little concerned about your second mortgage. How many payments are you behind with your second mortgage?
Posted on: 08th May, 2008 12:18 pm
6 months on second I'm arrears.
Posted on: 08th May, 2008 01:25 pm
Have you attempted to contact them to make some kind of arrangement? The last thing you want them to do is send you a notice of default.
Posted on: 08th May, 2008 01:30 pm
Well I agree with cliff and george. The second lender if contacted may have options for you so that you can pay off the loan easily. The reaffirmation agreement reflected on your credit report implies that you will pay off the remaining balance on the second mortgage even though you have been discharged from bankruptcy.

I shall suggest that you have a talk with the second lender since they didn't make you sign any written agreement and get confirmed as to when he wants you to start paying.


Posted on: 09th May, 2008 04:26 am
i filled bankrupt in may of 08. called indy mac 2 months ago and found out that my loan was not reaffirmed in their system. I told them I reaffirmed my loan during my bankruptcy and I have copy of agreement. they said to talk to my attorney. so I did they said they mailed it to indy mac, and they should have reaffirmed. I called indy mac back told them what the attorney said. they said that the judge needed to aprove it . Itold them that because I was represented by an attorney that was not the case. so they said to fax over my copy of the agreement mad in may and they will review it.
I need debt reaffirmation because im going to have to be late on house payment due to the fact indy mac paid my property taxes(even though i had a agreement with the county to make payments) and I cant afford the payment,and dont want to lose my home.
indy macs loss mitigation center wont modifie my loan without reaffirmation.Im not late yet but will have to be.
if they dont reaffirm my loan what can i do to keep my house.
Posted on: 05th Jan, 2009 12:01 pm
hi sean,

a reaffirmation agreement is signed between you and the creditor. it states that you will pay all or a portion of the money owed to the creditor/lender, despite filing bankruptcy. in return you will be able to keep your property and the creditor also promises that he will not repossess or take back the property as long as the payments are made.

if you have a copy of agreement which states that you have reaffirmed the debt, then the lender should agree to it. if the lender does not accept the debt reaffirmation then you can't do anything in this case. in my opinion, you should ask your lawyer to speak to the lender and sort out the issue.


Posted on: 06th Jan, 2009 02:15 am
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