Reaffirmation agreements are normal in . But prior to I can clarify if you will need to sign a reaffirmation agreement, we need to have to realize precisely what a reaffirmation agreement is. A reaffirmation agreement is a contract made by your creditor for you to agree to continue generating your common on your . The reaffirmation agreement will only be given to you if you file a Chapter 7, since if you file a Chapter 13 you will continue creating the or cover the in your Strategy. These are typically issued by creditors who holds the on , but oftentimes are issued by creditors like Very best Purchase (assuming you recently bought that massive screen television). The reaffirmation agreement will pull the debt out of and that debt will not be discharged. So you will be on the hook for the debt right after you get your discharge.
Sounds like a very good ? You maintain and you get to maintain , Tv, and/or home, ideal? Not so quick. Keep in mind, the most important cause you file for bankruptcy is to get a fresh financial start off in life, with no debts hanging more than your head which will allow you to save for retirement or whatever. If you sign the reaffirmation agreement, you defeat that purpose by allowing the debt to survive bankruptcy. If you sign the reaffirmation agreement, the debt will still be reported on , the creditors can nonetheless collect from you you if you fall behind, and the harassing telephone calls will start off all more than once again. If they make a decision to repossess your car or foreclose on your home, you will be responsible for the deficiency. And you cannot file yet another Chapter 7 for 8 years!!!
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