When you have filed for chapter and have sure money owed, you might have the choice to reaffirm these money owed. Reaffirming a debt implies that you conform to proceed paying it, despite the fact that it was included in your chapter submitting. Reaffirming debt is a course of that can be utilized in Chapter 7 chapter instances in Shelby County, or anyplace else in Alabama, to maintain sure money owed from being discharged. It is very important perceive the particular necessities associated to reaffirming debt so you can also make an knowledgeable determination about whether or not or not it’s best for you.
Not all money owed could be reaffirmed. Actually, there are strict tips about which money owed could be reaffirmed and the way the method have to be dealt with. Typically, solely secured money owed, reminiscent of a automobile mortgage or a mortgage, could be reaffirmed. Unsecured money owed, reminiscent of bank card debt, can’t be reaffirmed. Once you go to file for chapter, your chapter lawyer in Birmingham can advise you on how reaffirmation agreements work the place you reside.
Moreover, the reaffirmation have to be voluntary and never coerced by the creditor. Which means the creditor can not threaten to repossess your automobile or foreclose on your private home if you don’t conform to reaffirm the debt.
As soon as a reaffirmation settlement is permitted by the court docket, it turns into legally binding and enforceable similar to another contract between two events. Which means should you fail to make funds as agreed upon within the settlement, then your creditor could take authorized motion towards you with a purpose to acquire what’s owed. Due to this fact, it’s vital that you just totally perceive all your rights and obligations underneath any reaffirmation agreements earlier than signing them in order that precisely what’s going to occur should you fail to make funds as agreed upon.
It’s additionally vital to notice that whereas coming into right into a reaffirmation settlement may help defend your property from being repossessed by collectors throughout chapter proceedings, there are some dangers concerned as effectively. For instance, in case your monetary state of affairs modifications after coming into right into a reaffirmation settlement then you could end up unable to make funds as agreed upon which might result in additional authorized motion being taken towards you by your collectors. Due to this fact, it’s vital that you just fastidiously take into account all your choices earlier than deciding whether or not or not coming into right into a reaffirmation settlement is true on your specific state of affairs.
General, understanding particular necessities associated to reaffirming debt is important for anybody contemplating submitting for Chapter 7 chapter to allow them to make an knowledgeable determination about whether or not or not this feature is true for them. By doing analysis forward of time and consulting with an skilled chapter lawyer in Decatur who makes a speciality of chapter regulation previous to signing any agreements associated to reaffirming debt may help be certain that all your rights are protected all through this course of in order that all the pieces goes easily when submitting for Chapter 7 chapter safety.
Lawyer Steven A. Harris often blogs within the areas of household regulation, chapter, probate, and actual property closings on this web site. Mr. Harris tries to offer informative info to the general public in simply digestible codecs. Hopefully you loved this text and be happy to produce suggestions. We recognize our readers & love to listen to from you!