reaffirmation agreement

A Reaffirmation Agreement in Bankruptcy

by

A reaffirmation agreement in bankruptcy is a form agreement between a debtor and a secured creditor, such as a vehicle lender. The debtor agrees to pay back a specific debt even after bankruptcy. In return, the creditor promises not to repossess the collateral associated with that debt so long as the debtor stays current with payments. Reaffirmation agreements are available in Chapter 7, not Chapter 13. They are primarily used for secured vehicle loans, not mortgages.

Redeeming a Vehicle in Chapter 7 Bankruptcy

by

Most debtors filing Chapter 7 bankruptcy want to be able to keep their vehicles. An Arizona bankruptcy lawyer may advise the debtor to pay the lender only the current retail value of the vehicle in lieu of the entire loan balance. However, redeeming a vehicle loan has its drawbacks.

Can I keep my car in bankruptcy by reaffirming the loan? Usually, but there may be consequences.

by

Most debtors can keep their vehicles when they file bankruptcy. A complication arises when a debtor has a vehicle loan. A competent Arizona bankruptcy lawyer will advise that to retain the car, the debtor may have to stick his neck on the line and reaffirm the car loan, making the bankruptcy null and void with respect to a huge debt. But there may be some alternatives.