If you pass the means test that assesses your income and financial viability to repay debts you want discharged, a Chapter 7 bankruptcy can include your entering into a Reaffirmation Agreement that will allow you to keep secured property. The experienced, dedicated attorneys at Gillman Capone understand how traumatic it can be facing the loss of property you worked hard for, and we explore all avenues to help you keep it. That includes the lifeline that bankruptcy affords to rebuild your credit if you have amassed a mountain of medical bills or your job situation has changed.
More than 90 percent of Chapter 7 bankruptcy filers retain all their assets, according to the American Bankruptcy Institute, and entering a new contract with your creditors can allow you to retain secured property like your vehicle and furniture. For a free case review, and to learn if reaffirmation agreements in Madison bankruptcy are right for you, call now to schedule a free case evaluation.
Filing a petition for a Chapter 7 bankruptcy will stop creditors from contacting you in a process called an automatic stay. The automatic stay also stops:
Some assets are exempt from being sold by the appointed trustee, although the values are capped, and some creditors can propose entering into a reaffirmation agreement that allows you to keep secured property as long as you comply with the terms.
The terms make the secured debt enforceable after the judge discharges your bankruptcy. This means you are responsible for the balance of the debt, and the creditor can take you to court or repossess the item securing the debt if you fail to pay according to the agreed upon terms. These creditors can be the lender for your boat or car, or a credit union holding a secured note, but they are generally not mortgage lenders, according to industry standards.
Bankruptcy judges consider the financial risk associated with authorizing reaffirmation agreements for mortgages and rarely approve them. Our Madison, NJ reaffirmation agreement attorneys can explain how you can keep your home during and after bankruptcy if your mortgage payments are current.
If you have doubts that you will be able to conform to the terms of the reaffirmation agreement, talk to your Gillman Capone attorney to discuss your concerns and other options for keeping your secured property. For example, if your auto lender asks you to sign a reaffirmation agreement, you can decline and continue to make timely payments on the vehicle to retain it.
Your Madison attorney will receive a copy of the reaffirmation agreement a creditor drafts and sends to them. We meet with you to fully explain the terms and the consequences for default, and if you decide to sign it, the agreement will be filed before the judge enters your discharge at some time after the 341 meeting. The court can schedule a meeting to require that you and your lawyer confirm your ability to pay the secured debt if your Schedule J budget reports a deficit. Prior to your discharge and within 60 days of signing it, you can revoke the reaffirmation agreement associated with your bankruptcy.
A Chapter 7 bankruptcy affords you a fresh start to manage your finances and reestablish your credit. Your Gillman Capone attorney will guide you through the paperwork and court hearings, explaining actions taken to make sure you are comfortable with the plan. One of the elements you may encounter involves new contracts your collateralized lenders may present you with, and if you are comfortable signing them, you will keep secured property after your ordeal ends. Reaffirmation agreements in Madison bankruptcy are crucial tools we can explain to you. Call now to schedule a free case review.
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