FAQ: What is a Reaffirmation Agreement?
A reaffirmation agreement is simply an agreement to pay a debt that existed at the time you filed bankruptcy. Usually debtors are willing to enter into reaffirmation agreements on secured debts such as homes and automobiles.
Most credit cards, medical bills and other debts are "unsecured" and debtors generally don't enter into reaffirmation agreements on those kinds of debts. Typically, the creditor provides your bankruptcy attorney with a reaffirmation agreement for your review and signature. The one big downside to reaffirmation agreements is that you remain personally liable for the debt.
If you later default on your payments you could lose the property and become personally liable for any deficiency. Obviously, you will need to give careful consideration to your ability to make the payments and the potential consequences of a default. The bottom line: If you don't need the property and can't make the payments don't enter into a reaffirmation agreement.
CALL US AT OUR 24 HOUR CUSTOMER SERVICE HOTLINE: 1-800-562-0004
Our Business Hours are:
When you face financial troubles, Attorney Omar Zambrano is here to help!
Contact us today to schedule your FREE CONSULTATION.
We offer a low monthly payment plan!