Reaffirmation Agreements Oklahoma Bankruptcy requires you to decide if you’re going to reaffirm a debt when you file. If you choose to reaffirm a secured debt as opposed to surrender it, what you’re doing is keeping the asset (house or car ) and continuing the normal payments.
Reaffirming Your Mortgage:
This is common if you own a house at the time you file bankruptcy. As with other secured assets you can either reaffirm the asset or send it back to the creditor and eliminate the debt. To utilize Reaffirmation Agreements Oklahoma Bankruptcy chapter 7 you must be current on the mortgage at the time you file. In a chapter 13 you can also reaffirm the debt. But it’s not required that your current at the time you file.
Reaffirming Your Car Loan:
To reaffirm your car is like any other debt that you’re reaffirming. For your car you can either reaffirm the debt and continue making payments or you can send the car back. In a chapter 7 if you send the car back the bankruptcy eliminates the underlying debt. Also in a chapter 7 bankruptcy you’ll need to be current on the car note when you file. In a chapter 13 you’ll also want to be current when you file but its not required.
Filing Reaffirmation Agreements:
A good example of this is when you file bankruptcy but tell the bank that you want to keep your house and continue making payments. When your secured creditor’s get notice that you are reaffirming their debt they will send a reaffirmation agreement to my law office for you to sign. This is essentially a contract between you and the creditor stating that you intend to keep the asset and continue making payments under the original contract. A reaffirmation agreement must receive court approval. The court will only approve agreements that do not cause you undue hardship.
Charges For Reaffirming an Asset:
Although there’s more work doing a reaffirmation for customers most bankruptcy attorneys in Oklahoma don’t charge extra. Still its important to ask your attorneys so you have an accurate understanding of what they’re charging for their service. To tell you their fees without including things like the filing fee or fees for reaffirmation agreements is done in poor taste. I’ve seen some creditors charge for the reaffirmation agreement. Its not common and done more often by inexperienced creditors. For those who do generally it’s a small fee. Nonetheless, you should know up front what it costs for reaffirmation agreements Oklahoma bankruptcy cases.