Reaffirmation Agreements in Denver

A reaffirmation agreement is an agreement where the debtor chooses to be legally responsible again for a secured debt that would otherwise be dischargeable in their Chapter 7 bankruptcy or Chapter 13 Bankruptcy in Denver. An Bankruptcy attorney in Denver will tell you reaffirmations are voluntary and must be filed within the sixty days after the Meeting of Creditors. A reaffirmation does not always need to be entered into in order to keep property. Some creditors in Denver and elsewhere will allow debtors to continue to make payments after the bankruptcy in order to retain the property. Not all creditors will allow this and the debtor needs to understand that if a reaffirmation is not entered into the creditor could take the property back at any time even though the debtor has continued to make payments as per their current contract. A reaffirmation is a new contract and can be negotiated. Depending on the creditor the debtor may be able to negotiate down the balance owed and the interest rate.
A reaffirmation can only be done if it does not pose an undue hardship on the debtor. If an attorney helps with the reaffirmation, they will need to certify that entering into the agreement will not cause the debtor a financial strain. If the debtor completes the reaffirmation on their own they may need to appear before a judge to determine if the reaffirmation is in the debtorʼs best interest. If the judge believes that the agreement will pose an undue hardship on the debtor, he/she can keep the agreement from being entered into. After a reaffirmation is entered into the debtor can still change his mind, within sixty days from the discharge date the debtor can request in writing to have the agreement voided.  It is great to have a bankruptcy attorney involved as you’ll save yourself time and hassle.  Consider our attorneys for you bankruptcy services in Denver.