When you reaffirm a debt, you agree that you will still owe the debt after your bankruptcy case is over. Both the creditor’s lien on the collateral and your personal liability for the debt under the original promissory note survive bankruptcy intact—often, just as if you never filed for bankruptcy.
You or the lender must file the agreement in court as part of your bankruptcy case. Unless an attorney is representing you in the bankruptcy or in the reaffirmation process, the bankruptcy court must review the agreement in a reaffirmation or discharge hearing. At that hearing, the judge will review your bankruptcy paperwork to see how the reaffirmation might affect your post-bankruptcy budget and whether you can afford the payments. The judge can disapprove the agreement if it is not in your best interest or would create an undue hardship for you. The judge is likely to reject the agreement if it looks like you won’t be able to make the payments after paying your basic living expenses or if you owe much more on the debt than the property is worth.