Reaffirmation Agreement and More
Sometimes while filing bankruptcy, a person will choose to continue to pay a debt, even though the debt can be discharged otherwise. Such a debt is linked to a house or a car in most circumstances. In order to survive the discharge of this debt, you must sign a reaffirmation agreement and submit it to the court. Call your bankruptcy lawyer in OKC for detailed information.
How the Reaffirmation Agreement Works
In reaffirmation agreements, special rules apply and are completely voluntary. There is no need for reaffirmation agreements. In the case of bankruptcy, the reaffirmation agreement should:
concern your best interest.
not be a burden to you and your family.
be canceled within sixty days or before your discharge.
A reaffirmation agreement might appear to be good, and can be depending on the situation, their implications should not be taken lightly and they must be approved by the court. Should the Court disapprove a reaffirmation agreement, the agreement can have no binding effect.
If You Should Sign the Agreement
As stated above, deciding to reaffirm a debt should be considered with care. You will continue to owe the debt if you choose to reaffirm it and yet find yourself unable to pay the debt after a discharge has been received. The debt in question won’t be discharged. In addition, the creditor is entitled to proceed against you for the recovery of that property. The credible person can also file a suit or finally get a verdict against you. It’s essential to take reaffirmation agreements with due seriousness and carefully considered in a case of bankruptcy.
We encourage you to consult our bankruptcy lawyer in OKC at Chris Mudd and Associates if you would like more details about filing Chapter 13 or Chapter 7 bankruptcy.