When a person files bankruptcy, it can difficult to part with certain assets. Something like a prized car may have to be liquidated to settle a loan against the vehicle. In some cases, a bank or lender may be willing to allow a person to keep that vehicle if they sign a reaffirmation agreement. Basically, reaffirmation of debt means that a person can keep their property once the bankruptcy is complete if they agree to continue paying their debt obligations. As a St. Charles Bankruptcy Attorney, these agreements are generally a bad idea.
The biggest issue with reaffirming debt, and the reason creditors are eager to offer reaffirmations, is that a person cannot file for Chapter 7 again for 8 years. This means that a creditor has very little risk of losing money on the transaction. Vehicle loans are generally not longer than 6 years, so a creditor knows that by the time a person will be eligible against to file Chapter 7, the debt will have been repaid.
While it is difficult to let prized assets go, it is generally in a person’s best interest. A St. Charles Bankruptcy Attorney can sit down and explain your options, making you aware of your options. Ultimately, the decision to reaffirm debt will be your own. But in most cases, it is best to take the fresh start Chapter 7 gives a person. This way, you can start a new life free of debt instead of carrying unreasonable debt obligations and continuing to struggle.
At Westbrook Law Group, we will sit down and explain your options, helping you find the best solution for your debt problems. We understand how difficult it can be to be mired in debt and we want to help you. This way, you can live free of stress, free of harassment, and free of the problems this debt can bring. To speak to a lawyer, contact the Westbrook Law Group today for a free consultation.