Borrowers file for bankruptcy in most cases because of their ability to discharge their debts. A bankruptcy discharge is a everlasting court order forbids the creditor from taking any collection action against the borrower and releasing the borrower from the responsibility of having to pay the debt.
But, in some cases a borrower may want to repeat a debt in bankruptcy, instead of discharge it. Usually a borrower will replicate a debt when the debt has guarantee the borrower wants to keep, like a valuable jewelry or car. The borrower willingly agrees to pay the creditor all or a portion of the money owed when a debt is reaffirmed. The creditor can ask for a repossession and some other legal actions in order to collect the debt if a debt is reaffirmed and the borrower fails to pay the debt.
Requirements for Reaffirmation:
Reaffirmation agreements are entirely voluntary, which means that a borrower in bankruptcy can never be obliged to reaffirm a debt. Additionally, before they can become effective, all reaffirmation agreements have to be approved by the bankruptcy court.
A court will approve reaffirmation agreements only if:
- It is entered into willingly
- It is in the best concern of the borrower
- The creditor gives something of worth in return for the borrower signing the agreement
- The borrower has the ability to repay the debt
How To Keep Your Property Without Reaffirmation:
A good tool for borrowers is reaffirmation, but only if it is used in suitable situations. In some cases it may not be a good idea to reaffirm the debt if the property you want to keep qualifies for a bankruptcy exemption. The borrower will be allowed to keep the asset without having to reaffirm the debt if the property is exempt. The amount that is eligible for an exemption and which type of property will be determined by both Florida Bankruptcy law and Federal bankruptcy law.
You can contact them to speak with a tampa lawyer if you have any questions about the type of property and amount that can be exempted in bankruptcy. Most exemption questions can be answered over the phone. They offer free in-person consultations for borrowers considering filing for bankruptcy for more in-depth questions.
Consult a Bankruptcy Lawyer in the Tampa Bay Area Today
Florida Law Advisers may be able to help you if you are having a difficult time meeting your financial obligations. Tampa bankruptcy attorneys have years of experience helping people to solve their financial problems. They understand these are very difficult times for you and they are here to help. They have many options available that can help you to regain your financial health and to successfully manage your debt.
Filing for bankruptcy may be a good solution in some cases; however, it is often not the only solution available. And the right course of action will rely on the unique circumstances of your case. During the consultation a qualified Tampa Bankruptcy attorney will cautiously review the facts of your case and they will help you to choose the action which is best for your specific needs.Read More