Reaffirmation agreements can be a crucial tool for individuals who have filed for bankruptcy. These agreements allow a debtor to keep certain secured assets, such as a car or a home, by agreeing to continue making payments on the loan that is attached to the asset. However, it is important to understand when reaffirmation agreements are due and how to ensure that they are filed correctly.
When are reaffirmation agreements due?
In most cases, reaffirmation agreements must be filed with the court within 60 days after the first meeting of creditors. This meeting, also known as a 341 meeting, is typically held within a few weeks of the bankruptcy filing. If a debtor does not file a reaffirmation agreement within this time period, the automatic stay that protects the debtor`s assets from collection will be lifted, and the creditor can take legal action to repossess the secured asset.
It is important to note that in Chapter 7 bankruptcy cases, if a debtor decides not to reaffirm a debt, the creditor has the right to repossess the property. In Chapter 13 bankruptcy cases, the debtor typically has the option to keep the secured asset as long as they continue to make payments on the loan.
How to ensure a reaffirmation agreement is filed correctly
To ensure that a reaffirmation agreement is filed correctly, it is important to work with an experienced bankruptcy attorney. They will be able to guide you through the process and ensure that all documentation is filed in a timely and correct manner.
Some key steps to consider when filing a reaffirmation agreement include:
1. Reviewing the terms of the reaffirmation agreement carefully to ensure that it is in your best interest.
2. Completing all necessary paperwork accurately and completely, including a statement of financial affairs and a schedule of assets and liabilities.
3. Attending any required court hearings or meetings with creditors.
4. Obtaining approval from the court before the reaffirmation agreement is finalized.
In conclusion, reaffirmation agreements can be an important tool for individuals who have filed for bankruptcy. However, it is crucial to understand when these agreements are due and how to ensure that they are filed correctly. Working with an experienced bankruptcy attorney can help you navigate the process and protect your secured assets.