If I Reaffirm a Debt, Does It Have to Be on the Same Terms?
No. A “reaffirmation agreement” is a brand new contract between you and the institution or person to whom your debt is owed. In exchange for your willingness to pay, you should ask the creditor to agree to better terms such as a lower monthly payment or interest rate. You should also try to reduce the outstanding loan balance. Your lender may refuse to your terms, but it’s definitely worth a try.
In Colorado, when you reaffirm a debt, your lender must give you disclosures about the new reaffirmation agreement, including any new terms you and your lender agree on and a copy of the original credit terms. REMEMBER, though, that reaffirmation is always optional. It is not required under any law whatsoever. If a creditor tries to pressure you to reaffirm an outstanding debt, YOU CAN ALWAYS SAY NO.
If you’ve received a reaffirmation agreement or have questions about reaffirming debt, contact our offices in Denver today.