by Shakeal Masoud, Attorney at Law
Many people in bankruptcy complain that the reaffirmation agreement paperwork is not straightforward and difficult to fill out. Debtors often complain about an additional court appearance and whether the judge will allow them to keep their vehicle. The frustration is obvious because reaffirmation agreements are not simple for the debtor to complete. This is especially true when many attorneys won’t sign or explain the reaffirmation agreement to the debtor.
If you have filed for bankruptcy and intend on keeping your vehicle, lenders will require you to sign a reaffirmation agreement. However, if you choose not to fill out the reaffirmation agreement paperwork, does it automatically mean you will lose your vehicle? Not necessarily. The reason is that many car lenders will allow the debtor to “ride through” meaning that no repossession activity will be taken as long as the debtor remains current on his or her payments. So if the lender allows you to “ride through” and you remain current on your monthly payments, you can keep your vehicle without a reaffirmation agreement.
You must remember that even though you won’t get any paper statements from your car lender, the vehicle payment is still due. Hence, make sure your vehicle payments are timely made.
If you have any questions regarding your reaffirmation agreement, contact an experienced Los Angeles bankruptcy lawyer at Sky Law Group today.
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Reaffirmation Agreements,
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Ride Through,
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by Shakeal Masoud, Attorney at Law
If you are filing for bankruptcy and want to keep your vehicle or another secured asset, you will be required to enter into a reaffirmation agreement with the creditor. A reaffirmation agreement promises the creditor that you will continue to make payments on the secured asset you want to keep and in turn the creditor will not take the property back from you.
Many attorneys agree that its best to discharge all your debts in your bankruptcy to get a fresh financial start. Reaffirming old debts could put the debtor back into a quagmire of financial strain.
If you truly want to keep the asset and intend to make all timely payments than a reaffirmation agreement makes sense. If you are not represented by an attorney, the judge will make the ultimate determination as to whether you should keep the said property and whether doing so imposes an undue burden on you or your dependents.
A reaffirmation agreement must be completed before the discharge of our bankruptcy. You are not required to sign a reaffirmation agreement with any creditor as the process is strictly voluntary. Further, you do have the legal right to cancel your reaffirmation agreement, within the time allotted, if you so happen to change your mind.
Think carefully about which assets you intend to keep and whether the secured asset is worth it to reaffirm the debt. Often, clients have an emotional connection to a vehicle or asset they are paying way too much for to keep. In many instances, the best option is to let the property go and enter into new terms with another creditor at a much lower price.
If you have questions regarding a reaffirmation agreement in your Chapter 7 bankruptcy or Chapter 13 bankruptcy, contact an experienced Los Angeles bankruptcy lawyer at Sky Law Group today!
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Los Angeles Bankruptcy Lawyer,
Reaffirmation Agreements,
Secured Asset,
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