Borrowers have three options with regard to security in Chapter 7 bankruptcy. Debtors can give back guarantee for the creditors, without obligation to continue to redeem the collateral by paying the creditor the market value of assets, or to obtain maintain security, agreed to continue payments on building.
Agreement is a confirmation of a new promise to continue to provide payments, so that the obligor keeps the warranty. This agreement is after the bankruptcy, which means that borrowers renewing its commitment to refund payments are made means. Otherwise you keep payments on time, as stated in the agreement of creditors and confirmation of withdrawal of securities and may pursue the debtor through for all deficiencies.
In order to be approved by the court, an SBA (1) in the best interest of the debtor and (2) no undue hardship is for the debtor. If the debtor has an attorney, the agent can sign the certification, the agreement is confirmed in the best interest of the debtor and does not constitute undue hardship, and the audience is no longer necessary.
If the debtor is not confirmed by a lawyer or the lawyer of the debtor to the agreement to be represented, the hearing is required, and to determine the bankruptcy judge reviewing the agreement to reaffirm its acceptability.
Many discussions should carefully before reaffirming a debt. In the event that the balance against the creditor is much larger than the value of the collateral or if the interest rate is high for the loan can be supplying the safe choice. If the debtor is represented by a lawyer bankruptcy lawyer should try to negotiate with the creditors to obtain favorable terms for the loan.
Before deciding to sign an affirmation of debtors should be discussed with an experienced attorney in Gainesville.