When you decide to keep certain items of personal property in bankruptcy, you must still pay for those items. One way to continue payments is by signing a reaffirmation agreement that acts as a brand-new contract for the property, such as your house or car. One advantage of reaffirming may be a quicker rehabilitation of your credit score.
Steps to Utilize Reaffirm to Keep Your Personal Property in a Bankruptcy
If you decide to reaffirm certain debts, make that decision after thorough discussion with your bankruptcy attorney. Under the rules for reaffirming:
- The agreement must be filed no more than 60 days after your meeting of creditors. This is the meeting you attend once you file for bankruptcy, when the trustee assigned to your case examines your filing. Creditors are also permitted to be present and to ask questions regarding whether you intend to repay the debt or give back the property for which the loan was made.
- Certain terms required by the court must be used. Your Bakersfield bankruptcy attorney can review these documents on your behalf.
- A statement of financial information must accompany the agreement. It includes your income and expenses and is an indication of your ability to repay the loan as set forth in the reaffirmation agreement
California bankruptcy lawyers can explain the ramifications of signing a reaffirmation agreement and tell you the advantages and disadvantages of doing so. Call a bankruptcy attorney who has extensive experience in this aspect of federal law to discuss your options. You will get advice tailored to your specific financial circumstances.
If the pressure of debt hanging over your head is causing you to lose sleep at night, contact AV-rated bankruptcy attorney, Max Gardner at 661-888-4335 for a no-obligation consultation.
