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Reaffirmation Agreement
Practical Law Glossary Item 7-501-5880 (Approx. 3 pages)
Glossary
Reaffirmation Agreement
In the bankruptcy context, a Chapter 7 debtor's agreement to continue paying a dischargeable debt after a bankruptcy. This usually happens to prevent repossession of collateral.
In the commercial lending context, a borrower's or guarantor's confirmation that its:
- Obligations under the loan or guaranty remain in full force and effect.
- Representations and warranties in the relevant loan documents remain true and correct.
A lender typically requests reaffirmations from its borrower and any guarantors when entering into a loan modification or forbearance agreement.