Why Should I Have My Customer Reaffirm in Bankruptcy?

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When a debtor agrees to reaffirm a debt, the debtor agrees to be personally liable on a debt, after the discharge in the bankruptcy case. Normally, upon receiving a discharge in bankruptcy, a debtor is relieved from any personal liability on debts incurred prior to the bankruptcy filing.

For example, if I owe my attorney $200 and then I file bankruptcy and receive a discharge, that attorney is forbidden from collecting that $200. If a customer reaffirms, however, the circumstances change.

When a debtor signs a reaffirmation agreement in bankruptcy, that debtor agrees that he or she will remain personally liable on a debt after the bankruptcy discharge. This usually occurs on secured debts on which the debtor desires to continue to pay post-bankruptcy.

A common example is a real estate mortgage on the debtor’s homestead. If the debtor expresses a desire to keep the home post-bankruptcy, a creditor should require a debtor to sign a reaffirmation agreement. If the reaffirmation agreement is signed, and the debtor later defaults, the debtor is still personally liable on the note.

Meaning, if there is an eventual deficiency, he or she will remain liable for that amount.

On the other hand, if the debtor does not sign a reaffirmation agreement, but continues to pay on the mortgage and then years later defaults, the creditor is forbidden from seeking a deficiency judgment on any shortfall because of the failure to obtain a reaffirmation agreement in the underlying bankruptcy.

As you can see, this is a tricky area of the law, and you should seek legal advice on reaffirmation options regarding any specific situation.

Deanne Koll is an attorney with Bakke Norman Law Office. You can find out more about Bakke Norman and Deanne at www.bakkenorman.com.

Are Secured Debts Discharged in Chapter 7, Why Should I Have My Customer Reaffirm in Bankruptcy?.

Financial Obligation Relief Tips That Really Work

Those who are cooperative might want to negotiate. Devote a section of your spending plan for settling financial obligations. In fact standard sources and traditional loan providers take time for loan approval.

Why Should I Have My Customer Reaffirm in Bankruptcy?, Find top videos related to Are Secured Debts Discharged in Chapter 7.

Who Is Responsible For Your Financial Obligation If You Die?

It can take 3 to 6 months before you have your budget plan down. The absolute finest thing you can do to handle your Revolving Debt is to cut all of your credit card in half. We require not fret about this financial obligation.

So you’ve reached the point where you know you need assist with your credit card debts, and you have actually chosen it’s time to pay them off with a home equity loan. Wait! There are other options. You do not require to risk the house you’ve worked so hard for, in order to get rid of those charge card balances.

First, let’s understand unSecured Debt. Secured Debt is has a tangible item connected to it, such as a home, an automobile, a boat, a bike, or anything else that is utilized for collateral. Unsecured financial obligation has no concrete item connected to it for collateral. The truest example of unsecured debt is credit card debt. When qualifying you for financial obligation settlement programs, this is the first thing that debt settlement companies consider.

To prove cause number one involves looking as the financial circumstance in the past couple of years. With the current economic crisis, a great deal of Americans got so deep in financial obligation because they just did not have the cash to support their fundamental requirements. With the task loss and increasing joblessness rate, a great deal of consumers let their financial obligations run deep because they had no option. Obviously, offered this reason for credit card debt, you will believe that this is inescapable. But if you think of it, having an emergency fund established would have assisted in saving the day.

Oh, oh, that is simply what I stated it is coming out of the pockets of the citizen. Who would have thought that the public would be settling the debt of individuals that they don’t even know? Ouch, that hurt. Do not anguish now, whatever is going to be all right. Those in charge understand just what they are doing and they intend to keep right on doing it. They are distributing complimentary money to those that they think deserve it. Complimentary federal government grants for financial obligation relief are planned to make life easier for a picked couple of by providing a simple method of ending up being Debt Free.

Absence of current revolving account details – There isn’t enough current info on Revolving Debt to make a choice about what type payer you will be. If you do not have any other credit cards, attempt getting a protected one and make prompt payments for 6-12 months and then reapply. Pay as agreed for the very same amount of time and attempt again if you do have other credit cards.

When looking for a debt relief alternative, you have to understand that there are specific qualifications that you require to adhere to. All of them are effective but you require to certify for it economically to be able to maximize the benefits of each.

It is never ever simple to live a life that is totally financial obligation free but those efficient in ultimately doing so can take solace in the fact they will never ever have to handle the shackles excessive debt can connect to their lives.

Being debt totally free seems to be just beyond the reach of Americans today. It just implies they might attempt to charge you high rates and never ever get your financial obligation reduced.

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