Assumed Debts Compared To Assignments

An assumption is a voluntary act or agreement to take on obligations, or continue performing obligations under a contract, lease or other agreement. In bankruptcy cases, debtors may assume continued obligation for payments of debts that are secured by collateral. This particular assumption requires a reaffirmation agreement in Chapter 7 cases, signed by the debtor, with court approval. An assignment may include any transfer of debts, whether voluntary, involuntary, or by operation of law as in the case of liability assigned by statute for violations of law.