Filing bankruptcy online may be the only way some people can get their lives back in order. One issue that raises questions is reaffirmation. Reaffirmation of debt basically means that even though you file for bankruptcy, you agree to repay certain debts and keep the assets. Although the process may seem complicated, bankruptcy attorneys are knowledgeable about the bankruptcy laws in your area. They can address your questions and help to form a plan which will help your situation.
Once you have filed for bankruptcy an automatic stay is put in place. This means a judge will order that your creditors have to cease collection activities such as phone calls, letters and garnishment of wages. This stay is put in place for a few months as the case proceeds. The bankruptcy laws allow debtors to discharge certain unsecured debts and in some cases, keep assets and repay them on an affordable payment plan. Again, each case is determined by the individual's circumstances.
A reaffirmation agreement obligates you to repay the debt in exchange for keeping the assets. Your attorney will help you find out the value of the assets you wish to keep, and whether they are worth less than what you owe on the debt. This is one of the determining factors on whether to reaffirm the debt when filing bankruptcy online.
There is another option of keeping property and paying the debt which is between the debtor and creditor. The creditor basically lets the debtor to continue making payments and retain the assets without a formal written agreement. It is not part of the official bankruptcy so is not covered under the bankruptcy laws which specifically state how the debt will be handled. This option can be discussed in detail with your attorney to see if it is advisable in your situation.
Bankruptcy as it relates to real estate is a matter that is best negotiated with an attorney. Whether you decide to reaffirm mortgage debt depends on the amount of equity in your home and possibly what your future financial situation is likely to be. Usually reaffirming mortgage debt should not be a problem as long as you are able to keep your house payments current. Keep in mind that creditors strictly enforce terms like keeping up insurance and taxes when a debtor has gone through the bankruptcy process. Any default in these terms can lead to consequences such as foreclosure. In addition, collection activities can begin again because you have reaffirmed, or agreed to pay, the debt.
There are many bankruptcy attorneys in your area that offer free consultation and you can get help from when filing bankruptcy online. Get all of your questions answered and make the decision that can get you back on track financially. Get help to guide you through the bankruptcy process and eliminate your debts.
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