After you’ve decided that declaring Chapter 7 bankruptcy is the only solution to remedy the debts that have been haunting you for months or even years, you might be wondering whether you can keep one or more of the debts as your case moves forward.
Continue reading to learn more about reaffirmation agreements, and what you need to do to get one.
What is a reaffirmation?
In a reaffirmation agreement, you will work with your creditors to repay the debts you have on the items you hope to retain in your Chapter 7 declaration. In your standard Chapter 7 case, your assets and property will be liquidated and sold in order to repay your creditors.
But, if you want to retain your home or vehicle, for example, you can sign a reaffirmation agreement with your creditor so you can keep these valuable assets. However, you might need to be current on your debt before your creditor agrees to reaffirm it.
Simply put, in a reaffirmation agreement, you are reaffirming that you intend to repay your debt per your loan agreement.
Reaffirming Your Debt
If you hope to enter into a reaffirmation agreement, you will need to work with your creditor to get one signed and then file it within the bankruptcy court system before your debts have been discharged.
As long as you agree to continue paying on these debts, sign your reaffirmation agreement, and meet your scheduled payments, then you’ll be able to retain your specified possessions.
Seek Help from an Indiana Chapter 7 Bankruptcy Lawyer
If you need help filing for Chapter 7 bankruptcy, or if you have questions regarding your impending bankruptcy case, work with a highly trained Indiana Chapter 7 bankruptcy lawyer at Rowdy G. Williams Law Firm. You can call our office at 1-812-232-7400 or fill out the provided contact form below to schedule your complimentary case review today.