Keep Your House And Car By Reaffirming The Debts
When you file Chapter 7 bankruptcy, the court will discharge your obligation to repay debts. However, you may have secured debts for assets you want to keep. Examples may include loans for cars or equipment you need to operate your business. In that case, you may be able to reaffirm the debt to avoid having the lender repossess the property.
I’m Tennessee bankruptcy attorney Ben Sissman. For more than 30 years, I have helped people like you, with families just like yours, deal with debt problems. I offer a free initial consultation to discuss your situation and answer your questions.
Keep Your House And Car By Agreeing To Continue On-Time Monthly Payments
When you obtain a discharge of debt in bankruptcy, you are free of your obligation to repay the debt. However, if the debt is secured by an asset (such as a car loan), the creditor has the right to take the asset and sell it. When you reaffirm a debt, you agree to continue making payments and the creditor agrees not to take the asset.
I’ll Help You Decide Whether Reaffirming Some Debts Is Your Best Option
Before you reaffirm a debt, you need to ask yourself if it makes sense to reaffirm the debt. If the debt is for a newer car you can afford to keep, it may make sense to reaffirm the debt. If the debt is for an older car, a home appliance or furniture, the lender may choose not to repossess the item even if the debt obligation is canceled.
The only secured loans you need to reaffirm are those for personal property. You are not required to reaffirm loans for houses or real property. If you continue to make payments, you can keep the property.
Free Initial Consultation | Bankruptcy And Debt Relief Lawyer In Memphis
The law office of Ben Sissman is a debt relief agency that helps people file for bankruptcy relief under the Bankruptcy Code.