Should I Reaffirm Debt in Chapter 7?

One question many people have regarding Chapter 7 bankruptcy is about reaffirming debt. When a person has an asset that they would otherwise lose, they may be tempted to reaffirm the debt in order to keep this particular asset. In general, this is a decision that should be very carefully considered. There is no single right or wrong decision and it will instead depend on a filer’s individual circumstances. A St. Charles bankruptcy lawyer can examine your situation and help you weigh the pros and cons of reaffirming debt before you make any decision.

The biggest danger in reaffirming debt is that Chapter 7 bankruptcy won’t be available for some time should you fall into further debt trouble. A filer must wait 8 years from their filing debt before filing again, so it may make no sense to file bankruptcy if you are going to keep assets that weigh heavily on your income. Since bankruptcy can help you get a fresh start, it may not be the best idea to keep assets that are difficult to afford.

There are times, however, when a particular debt situation may be temporary and a person wants to keep their asset. An example might be medical bills from an acute illness that caused extreme financial hardship. If a person owns a home they don’t want to sell but they want a discharge in Chapter 7, they may wish to reaffirm their debt in order to keep their home. If a filer is sure the situation is over and they won’t face further hardships, reaffirming debt may be a decent option. An attorney can help you make the best decision for you and your family.

At Westbrook Law Group, we have helped clients in St. Charles, Troy, and across Missouri find the best solution for their debt troubles. We know how difficult it can be to face overwhelming debt and we are to help. For a free consultation to discuss your situation, contact Westbrook Law Group today for a free consultation.