You should thank your attorney for not filing a reaffirmation agreement. The goal of a Chapter 7 bankruptcy is to discharge debt and give debtors a fresh start. Reaffirmations conceptually defeat these goals and I have sat in open court and watched bankruptcy courts deny reaffirmations...
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Jun 21, 2013 · Whether you realize it or not, your attorney probably did you a favor by not allowing you to reaffirm a debt that you could not afford to pay and luckily there is nothing you can do to get back into the debt you cannot afford to pay. You are not stuck with an interest only loan as you have no loan it was discharged in your bankruptcy case.
Jun 06, 2011 · The bankruptcy courts have anticipated that a lawyer might sometimes feel that he or shecannot sign a reaffirmation agreement for a given client. Therefore, thecourts allow a reaffirmation agreement to be filed without the lawyer’s signature.A court hearing is then scheduled, at which the lawyerexplains why the debtor feels he or she can afford the payments …
How is a Reaffirmation Agreement Filed? A reaffirmation agreement will be enforceable only if it complies with specific procedures and makes certain necessary disclosures. If you have filed for bankruptcy in the United States Bankruptcy Court for the Southern District of New York, then you must follow the Guidelines for Filing a Reaffirmation ...
A reaffirmation agreement shall be filed no later than 60 days after the first date set for the meeting of creditors under §341(a) of the Code. The reaffirmation agreement shall be accompanied by a cover sheet, prepared as prescribed by the appropriate Official Form. The court may, at any time and in its discretion, enlarge the time to file a reaffirmation agreement.
An executed reaffirmation agree- ment may be filed by any party, including the debtor or a creditor. It must be filed within 60 days after the first date set for the first meeting of creditors in the bankruptcy case unless the deadline is extended by the bankruptcy court.
A reaffirmation agreement is an agreement made between a creditor and the debtor that waives discharge of a debt that would otherwise be discharged in bankruptcy. ... When a debtor does not reaffirm a mortgage loan, the lender will stop reporting the loan on the debtor's credit report.Oct 12, 2016
Can you file a reaffirmation agreement after discharge? Once a discharge order has been entered in your bankruptcy case, you can no longer reaffirm any of the debts that were included in the discharge agreement. The same goes for if your case has been closed by the court.Jan 13, 2021
As long as you continue to make payments on your home, no reaffirmation agreement is necessary. You lender will continue to accept payments and will not foreclose unless you fall behind on your payments.Jun 17, 2011
Reaffirming a debt allows you to keep the property securing the debt, which can be a real advantage in some cases. It also allows you to avoid having to come up with a lump-sum payment to keep the property.
Either way - if the reaffirmation agreement is not approved, your personal liability is discharged. And - just like when the court denies approval of the reaffirmation - most lenders will simply keep everything the same, as long as you make timely payments and keep the vehicle insured.Sep 3, 2020
In a Chapter 7 bankruptcy, it is sometimes a bad idea to reaffirm certain types of debts. Reaffirm means you re-obligate yourself on the debt. Or in other words, you legally agree to treat the debt as if you have never filed Chapter 7 bankruptcy against it. ... An unsecured debt has no collateral that backs up the debt.
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A reaffirmation agreement is where you agree to pay a debt even though you could have eliminated the debt in your bankruptcy case. When you reaffirm a debt, you continue to be legally responsible for paying it back. This gives the creditor some legal rights.
No Legal Requirement to Reaffirm a Mortgage to Refinance You can refinance your mortgage even if you did not reaffirm it. The solution is easy. Work through an experienced mortgage broker who can submit your refinance package to multiple lenders. The broker can find a lender willing to refinance your mortgage loan.May 21, 2014
Reaffirming Helps Rebuild Your Credit So timely payments won't help you establish a good credit history after bankruptcy. If you reaffirm the loan, your lender will continue reporting payments.
Reaffirming your mortgage means that you file paperwork that states that you affirm this debt regardless of your bankruptcy discharge. That protects your lender from losing out on the money they have invested in the property, and it also allows you to retain your ownership in the home and your accumulated equity.Mar 12, 2019