At the conclusion of your bankruptcy filing, your debts will have been legally discharged and your Fresh Start begins. At the filing date, you had financed a nice automobile which you drive back and forth to work and for recreational driving as well. You have a car loan with a local bank or credit union. While you make payments, the bank or credit union has a lien on the title to protect their loan interest.
Cincinnati Lawyer Assisting With Reaffirmation Agreements
All of the Reaffirmation issues are complex and have long ranging, potentially negative consequences so you need a seasoned and proven lawyer in your area to counsel and advise you. As with all aspects of your Bankruptcy, if you are considering filing you should call Steiden Law Offices at and schedule your free consultation with one of our experienced attorneys. Our attorneys can confidentially analyze your specific situation and provide sound guidance and advice to maximize your Bankruptcy result.
What is Reaffirmation?
When you get your bankruptcy discharge at the end of your case, the Discharge will discharge the promissory Note aspect of your loan relationship even though it is your intention to keep the vehicle and continue to make the contractual payments. This means after the Bankruptcy you have possession of the vehicle, you technically don’t owe any money and the lender still has a lien on the title.
A Reaffirmation Agreement is a document which your lawyer will review with you. When you sign such an Agreement and it is signed by your lawyer and approved by the Court, you are once again liable financially for the Reaffirmed Debt’. Steiden Law Offices will explain what and when it is appropriate to enter into.
The Reaffirmation Agreement
In order to be valid and enforceable, the Reaffirmation Agreement must meet certain legal requirements. It must also have the signature of the Debtor, Debtor’s Counsel and then the Judge’s approval. Some lenders require the Reaffirmation Agreement as part of the process of your retaining the collateral. Often times it is beneficial to sign a Reaffirmation Agreement to help you rebuild your consumer credit report and to maintain a favorable relationship with a lender. Your lawyer can advise you during your consultation and as the case moves forward. You do not want to make a contractual commitment with a Reaffirmation Agreement that you cannot afford.
Reaffirmation Agreement Default
When you execute a Reaffirmation Agreement, it’s as if you never went Bankrupt on the debt. If you default on the new Reaffirmed Debt and if the lender repossess the collateral, there may be a balance remaining and you may be subject to collections actions to collect it. It is also very likely that this new, derogatory credit will damage your Fresh Start. The decision to reaffirm or not is complicated and has far reaching implications, some good and some bad.
Finding the Best Bankruptcy Attorney to Assist With Your Reaffirmation Agreement
Steiden Law Offices has significant experience in counseling and representing clients in the Northern Kentucky and Greater Cincinnati areas who are considering filing a Bankruptcy. Steiden Law Offices has handled thousands of these cases and dealt with these issues and has significant insight. Call and schedule your confidential, no obligation consultation to find out if Bankruptcy will help you deal with your financial situation.