Can I keep a piece of property and agree to pay the debt in a Chapter 7 case?
In some circumstances, a debtor may choose to keep an asset, such as a car, and agree to pay some or all of the debt. This is called reaffirming the debt and in such circumstances, the creditor agrees not to repossess the asset.
This has to be done before a discharge is entered and involves an agreement between the debtor and the creditor concerned. In order to reaffirm a debt, the creditor must sign and submit a reaffirmation agreement to the court. A reaffirmation agreement must contain certain disclosures, including the amount of the debt and how that has been calculated. Additionally, the debtor is required to file a financial statement showing how the debt will be paid and showing that the payments are feasible.
If the debtor is represented by an attorney, the attorney must submit a written certification that the debtor was advised of the consequences of the reaffirmation and that repayment will not represent an undue hardship. If the debtor does not have an attorney, the bankruptcy judge must approve the reaffirmation.
Gonzalez & Waddington are Augusta GA bankruptcy lawyers and GA bankruptcy attorneys that assist our clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.
Our bankruptcy law firm is located in Augusta, Georgia. Our Georgia bankruptcy lawyers represent clients in Augusta & throughout the CSRA, including Columbia County, Richmond County, Lincoln County, McDuffie, Jefferson and Burke Counties, Evans, Appling, Waynesboro, Louisville, Thomson, Lincolnton, Girard Georgia & Aiken, South Carolina & North Augusta SC.
Comments on this entry are closed.