Reaffirmation Agreements Oklahoma bankruptcy is simply an agreement between the debtor and creditor made prior to discharge to pay a certain debt that would otherwise be discharged in the bankruptcy. Most common Reaffirmation Agreements allow debtors to reaffirm the debt secured by their house, cars or other property securing a debt.
Reaffirming Your Mortgage:
Many people who file bankruptcy in Oklahoma own homes. This raises the question of whether you want to keep your home (reaffirm the debt) or surrender your home and discharge the debt in the bankruptcy. If you file a Chapter 7 bankruptcy you can reaffirm the debt on your home only if you are current on the mortgage payments. In the event you file a Chapter 13 bankruptcy you can reaffirm the debt even if you’re not current on the payments.
Reaffirming Your Car Loan:
When you file bankruptcy and you have a car that is securing a loan you are faced with the same decision you have with a house. Do you keep the car and reaffirm the debt? Or do you surrender the car and allow the debt to be discharged in the bankruptcy? Like a house, in a Chapter 7 bankruptcy, you’ll need to be current on the car note when you file to reaffirm the debt.
Other Requirements for Reaffirmation Agreements:
In summary Reaffirmation Agreements Oklahoma is essentially a contract between you and the creditor stating that you intend to keep the asset and continue making the agreed upon payments. However your Reaffirmation Agreement must receive court approval. The court is going to look at your income and expenses to verify that you can afford the reaffirmed debt. The court will also make a finding that the Reaffirmation Agreement is in the debtor’s best interests. The court will only approve agreements that will not cause you undue hardship.