There is a provision under the bankruptcy code where you may discharge a student loan if not discharging the loan would create a hardship Court fines and criminal restitution Personal injury caused by driving drunk or driving under the influence of drugs. Many times even though a debt can be discharged, a person may want to reaffirm the debt. A reaffirmation is simply a negotiated repayment plan with your creditor. We notice that this is most common is Chapter 7 cases where a person has purchased a Home or a car and would like to keep it after the bankruptcy. Other people sometimes like to maintain a credit card so that they can begin to reestablish their credit.
Reaffirmation agreements are completely voluntary.
A creditor cannot harass or coerce you into entering into a reaffirmation agreement. Must be voluntary. Must not place a heavy burden on you or your family. Must be in your best interest. A reaffirmation agreement can be cancelled anytime before the court issues your discharge or within 60 days after the agreement is filed with the court, whichever gives you the most time.