reaffirmation agreement Tag

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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11 May Is Reaffirmation of a Mortgage Required?

When you file for bankruptcy, you are generally given three choices with regard to a secured debt; that is, a debt that is attached to a lien on something you own. The Bankruptcy Code specifically deals with reaffirmations and when and how they must occur. That information appears elsewhere on this site and there is debate over whether there is a fourth option to keep the collateral and continue paying the debt without reaffirming. But, do you need to reaffirm a mortgage too? When the Bankruptcy Code was changed in 2005, much emphasis was placed on reaffirming secured debt. The lenders proposed, and paid for, a change in the law to require a consumer to reaffirm a car loan or the lender would be given the right to ignore the bankruptcy and repossess the car. The same is true for loans on other kinds of personal property. When you do not reaffirm a loan secured by personal property, the automatic stay of the bankruptcy case is automatically terminated. It is up to the lender and state law what happens next. But what about real property? What about your home? Do you need to reaffirm a mortgage to keep it and be allowed to keep paying the payments when you file for bankruptcy?
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