Interesting overview about causes Of Debt, Getting Out Of Debt, Cash Advance, Eliminate Unsecured Debt, and Can Secured Debt Be Discharged, The Basics of #Reaffirmation #Agreements: What You Need to Know.
If you have #debt which you want to #retain in your case you may be required to sign a reaffirmation agreement in order to prevent the #collateral from being taken after your #discharge.
WHAT IS A REAFFIRMATION AGREEMENT?
Individuals who file for bankruptcy #protection do so to eliminate their debt and to obtain a financial “fresh start.” Not all debts are dischargeable, but most common consumer debts are. In some cases, a debtor may wish to keep making payments on debt even though that debt can be discharged in their bankruptcy. When a debtor agrees to pay such a debt by contract, the debtor must enter into a reaffirmation agreement with a creditor to “reaffirm” the debtor’s intent to pay. By entering into a reaffirmation agreement the debtor will be contractually bound to pay the otherwise discharged debt even if, at some point during the life of the agreement, the debtor is unable to make the payments.
WHICH #CREDITORS REQUIRE A REAFFIRMATION AGREEMENT?
The decision to reaffirm a personal liability on secured debt depends on the type of secured debt. If the secured debt is real property the debtor is reaffirming any personal liability that would be owed under the note. If the debtor enters into a reaffirmation agreement, he or she is liable for that amount. Here in Georgia, most Chapter 7 bankruptcy clients have to decide if they wish to reaffirm on their cars and mortgage loans.
Auto Loans: If you have a vehicle and you wish to retain that car and keep making your payments then you will be required to sign a reaffirmation agreement, Otherwise, the debt will be discharged with your case and even if you are current on your payment the lender may repossess the vehicle. While some car creditors may allow you to “retain and pay” without signing a reaffirmation agreement, there is no legal requirement for them to allow you to do so without a reaffirmation agreement signed and filed in your bankruptcy case.
Mortgage Loans: In Georgia, debtors are not required to sign off on a reaffirmation agreement in order to retain their property. They can allow the loan to discharge but continue to make payments to the lender. This means that if for some reason after the discharge of the case, the debtor cannot afford the home, they can simply walk away from the home and the lender cannot pursue any collection on the mortgage loan.
Many times, in the case of a first mortgage the benefit in signing a reaffirmation agreement is that the lender will usually agree to resume sending mortgage statements. The lender may agree to resume credit reporting activities –which will help a debtor rebuild credit.
In addition, signing a reaffirmation agreement may also allow the debtor to entertain the full range of assistance programs offered by the lender, and they may be eligible for a loan modification where they might otherwise be disqualified (because with no liability on the underlying note, some lenders may determine that modification of the underlying note is not feasible to the extent that it is unenforceable except through foreclosure). With this said, some lenders will continue to work with debtors even if there is no reaffirmation agreement.
WILL THE CREDITOR CONTINUE TO REPORT TO THE CREDIT BUREAUS IF YOU REAFFIRM ON THE DEBT?
One of the most hotly debated topics I hear regarding reaffirmation agreements and credit is whether the lenders will report on your credit report if you reaffirm on a debt. There is no provision of the Fair Credit Reporting Act, nor the bankruptcy code, which imposes an affirmative duty upon any creditor to make reports to the credit bureaus. This is true, even in cases that don’t involve a bankruptcy case. Under FCRA, creditors are only obligated to make accurate reports. There is no authority to compel them to make a report at all. Failure to report payments does not constitute a violation of the discharge injunction.
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Can Secured Debt Be Discharged, The Basics of #Reaffirmation #Agreements: What You Need to Know.
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In fact, the average American household now has around $10,000 or more of unsecured Revolving Debt that they owe.
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Even with the very best of intentions, this can develop a dreadful situation unless very carefully handled. However so, obviously, would their credit reports. Sources of protected financial obligation consolidation loan are lots of.
Countless Americans owe money. A growing number of Americans are starting to feel the weight of their financial obligations come squashing down on them as we go into a financial downturn. No matter if you have a little amount of financial obligation or a big amount here are some steps to assist you get out of financial obligation the easy way.
So we understand that having unSecured Debt is not such a bad thing when compared to Secured Debt, but how do we set about decreasing removing it. Well, the single most efficient technique is through debt settlement.
If any of those commitments can be turned into a debt free circumstance instantly, analyze. In other words, can you get an equity loan to settle your revolving credit? An equity loan may not appear like the very best move given that it is utilizing security on your house, which further increases any home loan you have left; however, the rates of interest is often much better. Any chance you have to decrease your rates of interest and monthly payment, the easier it will be to become debt complimentary.
Sounds like a dream, but very few of us retire Debt Free. I understand a great deal of elders in their early 70s and late 60s who have retired, but continue to work due to the fact that they are not Debt Free for one reason or another. Usually easy credit and credit cards are the issue. But the dream is worth pursuing. If you desire and retire to enjoy things other than simply the capability to go to work, specifically.
Lack of current revolving account info – There isn’t enough recent info on Revolving Debt to decide about what type payer you will be. Try getting a secured one and make prompt payments for 6-12 months and then reapply if you do not have any other credit cards. If you do have other charge card, pay as concurred for the very same quantity of time and attempt again.
When noting your financial obligations on your worksheet, make a note of the limitation of each credit card or other kind of debt and add these amounts approximately get your total possible debt. You can discover information about your limits on your statements. This will show you the overall possible amount of debt you might have. Are you at the top of your limitations? Or could you go further much deeper into debt? In either case now you know how bad it can get.
It is never easy to live a life that is totally debt complimentary but those capable of ultimately doing so can take solace in the reality they will never have to deal with the shackles extreme debt can attach to their lives.
The result is the amount of money you need to earmark monthly for your Holiday Fund. We will likewise speak about how you can eliminate your credit card financial obligation later. Debt backed or secured by collateral.
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