Example of Reaffirming vs. Cramming Down Furniture Loan
An example comparing the reaffirmation of a debt secured by furniture in a Chapter 7 case and cramming down that debt in a Chapter 13 case.
Example of Reaffirmation Agreement vs. Cramdown of Vehicle Loan
Here's an example of the reaffirmation of a vehicle loan in a Chapter 7 case vs. "cramdown" of the debt in a Chapter 13 case.
Examples of Reaffirmation Agreement vs. Chapter 13
Here are examples of the reaffirmation of a secured debt (like a vehicle loan) in a Chapter 7 case vs. addressing it in a Chapter 13 case.
Reaffirmation Agreement vs. Chapter 13
When is it better to reaffirm a secured debt (such as a vehicle loan) in a Chapter 7 case vs. handling it instead in a Chapter 13 case?
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Rescinding a Reaffirmation Agreement
Unlike most legal contracts, you can change your mind and undo a reaffirmation agreement during a short period of time after signing it.
The Reaffirmation Hearing
You don't need to go to a reaffirmation hearing, unless you don't have a lawyer, or he or she does not sign the reaffirmation agreement.
Reaffirming a Debt That’s Not Current
You usually have to get current on a secured debt before you can reaffirm it. But the terms of a reaffirmation agreement may be negotiable.
Be Cautious about Reaffirming a Debt
Reaffirming a debt, including a vehicle loan, can be a very sensible choice. But be fully aware of the risks and possible other options.
A Debt Reaffirmed under Chapter 7
You can usually keep collateral you need to keep by entering into a "reaffirmation agreement" with the creditor during your Chapter 7 case.
Debts Voluntarily Paid in Chapter 7
Chapter 7 is usually much better if one of your high priorities is to favor a debt by paying it. You can do so more easily and flexibly.
Exceptions to the Discharge of Debts in Chapter 7
Often all your debts are discharged--legally written off--in Chapter 7. But some you might want to pay, or might not be able to discharge.
“General Unsecured Debts” in Chapter 13
You pay your general unsecured debts only as much as you can afford during a Chapter 13 plan, with the rest then legally written off forever.
“General Unsecured Debts” in Chapter 7
In a Chapter 7 case all or most "general unsecured debts" get "discharged"--legally written off. That's one of the big benefits of Chapter 7.
Unsecured Debts in Bankruptcy
Your debts are either secured by something you own, or they are unsecured. Unsecured debts are either "priority" or "general unsecured."