You may have heard that you can “reaffirm” a debt in a Chapter 7 bankruptcy proceeding. The decision whether or not to reaffirm a debt is a delicate one, and best undertaken only with the assistance of a qualified Athens Chapter 7 bankruptcy lawyer, as it will affect your legal rights and obligations.
First of all, what does it mean to reaffirm a debt? According to the U.S. Courts website, when you reaffirm a debt, you are making an agreement with a creditor that you will continue to pay all or a portion of a debt that otherwise would be discharged through the bankruptcy proceeding. By agreeing to this, the creditor agrees not to repossess or take back the property so long as you continue to make payments. The benefit to you is that you will get to keep your property. Please be aware that you must reaffirm a debt before you receive a discharge, and you must sign a written reaffirmation agreement that is submitted to the court. The decision to reaffirm a debt is significant, and the courts will not allow it if it will cause you undue hardship.
Bankruptcy is a complicated process involving numerous legal steps. The consequences for not following the process correctly can be severe. If you or a loved one is considering filing for a Chapter 7 bankruptcy, an Athens Chapter 7 bankruptcy lawyer can help you evaluate your situation and determine how best to proceed.
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