Be Careful Which Debts You Reaffirm

21 Sep Be Careful Which Debts You Reaffirm

A tire company sent a reaffirmation agreement to me for one of my clients to sign. A reaffirmation agreement is a new contract to pay an old debt that is included in your bankruptcy filing.

I laughed when I saw who it was from but I laughed even harder when I discovered it was for a brake job done in 2003. The debt was charged off in 2004. The statute of limitations to sue on this debt expired more than a year ago. They must be crazy if they think I will have my client sign this agreement.

If you receive a reaffirmation agreement, always have your attorney review it before you sign the agreement. You don’t want to get back into debt for something that is clearly dischargeable in your bankruptcy.

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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
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