Have you recently filed for bankruptcy? Are you trying to keep some of your property and assets throughout the process?
If so, then your creditors likely sent you a reaffirmation agreement to sign. What exactly is the legal document, and what does it mean for you and your debts? Learn everything you need to know about reaffirmation agreements below.
Reaffirmation Agreements: What You Need to KnowWhen you’re going through a Chapter 7 bankruptcy, your creditors may send you a reaffirmation agreement. This agreement is voluntary on your part. The agreement simply states that you still intend to pay your debt over time. It also means that your debt won’t get discharged.
In exchange for agreeing to keep the debt, your creditor will agree not to take any repossession actions against your property. That means you’ll get to keep your home or car as long as you keep up with your end of the agreement.
Reaffirmation agreements don’t make a lot of sense if you’re going through Chapter 7 bankruptcy. When you file, your creditors are automatically forced to stop all collection actions until your case is heard in court. You’ll also likely get asked to agree with a payment plan. If this plan isn’t something you can follow through on, then you need to reconsider signing the agreement.
Despite these negative aspects, a reaffirmation agreement does mean that you get to keep your property. If you feel inclined to sign, then consider consulting with a lawyer to ensure the agreement is fair.
Do You Need Help Filing for Bankruptcy?Before you sign any legal document, it’s important to read through every sentence. Ensure that you understand the terms of your agreement and that you can uphold your end of the deal. If you’re unclear about anything in the agreement, then it’s advised you reach out to an attorney.
Our legal experts have the knowledge and experience you need on your side while you’re going through bankruptcy.
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If you feel bankruptcy is the best option for your financial situation you need to speak with an experienced bankruptcy lawyer as soon as possible. Please contact us online or call our office directly at 888.348.2616 to schedule your free consultation.