This video explains what it means to reaffirm your debt in chapter 7 bankruptcy. When you file for chapter 7 bankruptcy, your personal liability for your qualified debt is eliminated. But liens on your property remain. By way of example, let’s assume you borrowed money to buy a car. After you file for chapter 7 bankruptcy, you are no longer liable to make the payments. But your lender can repossess your car if you fail to stay current on your payments (because it has a lien on your car). So what can you do? One option you have is that you can reaffirm your loan. Basically, it means that you petition the bankruptcy court to, once again, make you personally liable for your loan. In other words, you are asking the judge to put you back on the hook for your loan. So why would you want to do this? In most cases, you do not. Reaffirming debt is risky and does not benefit you in most cases. For instance, let’s say you reaffirm a loan and you cannot make payments on it six months after you file for bankruptcy. Your creditor will be able to sue you for payments, charge you late fees, and possibly repossess your property. That will have a negative impact on your attempts to re-establish your credit rating. Not only that, but it does not make a lot of sense to ask to be made liable for a loan that you otherwise would be free from. Chapter 7 bankruptcy gives you a great chance to live a debt free life style. You do not want to start on the wrong foot by taking on debt. But there are …