Reaffirmation Agreements and Queens Bankruptcy
What is a reaffirmation agreement?
A reaffirmation agreement is a contract between you and your lender that says you are legally obligated to pay all or part of a debt that would be discharged in your bankruptcy case. For example, you may want to keep your car or your home – if you sign a reaffirmation agreement with your creditor you are promising to pay that debt. To complete this agreement, you and your creditor complete a reaffirmation agreement form, indicating the nature of your debt, it’s value, and your reasons for affirming it.
If you sign a reaffirmation agreement that applies to debt secured by real estate, like a mortgage on your home, the court does not need to approve the agreement. Other reaffirmation agreements may need to be approved by the court to see if it is in your best interest to reaffirm.
Are reaffirmation agreements required during bankruptcy?
No, reaffirmation agreements are voluntary and are not required by the law. But it is a legally binding document between you and your lender; if you fail to pay your reaffirmed debt it remains as owed to the lender as though there were no bankruptcy, and the lender can take action to collect it from you. You do, however, have the right to revoke your reaffirmation agreement within 60 days of signing it.
Signing a reaffirmation agreement is signing a contract, so you should take time to make sure that you can make these newly scheduled payments. You can work with a Queens bankruptcy attorney to consider your options and see if a reaffirmation agreement is right for you – Contact the Law Offices of Bruce Feinstein, Esq. today!
Reaffirmation Agreements in Queens
If you are considering a reaffirmation agreement with a creditor in order to keep an asset like your home or car, you should speak with an attorney who can take you through the pros and cons of signing such an agreement. Bruce Feinstein, Esq. has years of experience working with thousands of clients on a range of financial issues, and his knowledge is an important asset when it comes to affirmation agreements and other parts of a bankruptcy process. Whether you are filing for Chapter 7, Chapter 11, or Chapter 13 bankruptcy – or trying to see if bankruptcy is the right decision to make – Bruce Feinstein, Esq. and his team will provide exceptional legal advice and offer the support you need.