When you file for bankruptcy, an automatic stay is enacted. This means that a judge will order your creditors to cease all collection efforts, including phone calls, letters, and wage garnishment. This stay is in effect for a few months while the case is pending. The bankruptcy laws permit debtors to discharge certain unsecured debts and, in some instances, to retain assets and repay them according to an affordable payment plan. Again, each case is determined by the circumstances of the individual.
A reaffirmation agreement imposes the obligation to repay the debt in exchange for the retention of the assets. Your attorney will assist you in determining whether the value of the assets you wish to retain is less than the amount you owe on the debt. This is one of the factors that determine whether to reaffirm the debt when applying online for bankruptcy.
There is another option between the debtor and creditor for retaining property and paying the debt. Without a formal written agreement, the creditor allows the debtor to continue making payments and retain possession of the assets. It is not a part of the official bankruptcy and is therefore not covered by the bankruptcy laws, which specify how the debt will be managed. This option can be discussed in depth with your attorney to determine whether or not it is appropriate for your situation.
Real estate bankruptcy is a matter that is best negotiated with the assistance of an attorney. The decision to reaffirm mortgage debt is contingent on the amount of equity in your property and, possibly, your future financial situation. Generally, reaffirming mortgage debt should not be a problem as long as you are able to maintain current mortgage payments. Keep in mind that creditors rigorously enforce terms such as maintaining insurance and tax payments after a debtor has filed for bankruptcy. Any breach of these conditions may result in consequences such as foreclosure. In addition, collection activities may resume if you have reaffirmed the debt or agreed to pay it.
Numerous bankruptcy attorneys in your area offer free consultations and can provide assistance with submitting bankruptcy online. Get the answers to all of your concerns and make the financial decision that will get you back on track. Get assistance to navigate the bankruptcy procedure and eliminate your debts.""
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