If you are thinking about filing for bankruptcy, it’s important to sit down with an experienced attorney first to talk through the various phases of the bankruptcy process and to get a better understanding of what is involved with you as the petitioner.
Reaffirmation Hearing in Bankruptcy
The support from an experienced bankruptcy attorney from the moment you decide to file your petition all the way through receiving your discharge paperwork can be very important for your future. Understanding the status of various hearings can be very informative if you are trying to reaffirm a debt in bankruptcy. If you have secured loans and intend to file Chapter 7 bankruptcy, you will need to sign a reaffirmation agreement if you intend to keep the property that you first pledged to get the loan.
In certain situations, the court might decide to hold a reaffirmation hearing to determine whether or not the agreement should be approved. Certain property may have been pledged with collateral when you originally took out a loan. If you don’t repay the loan, the lender is eligible to take certain pieces of the property.
Some of the most common secured loans include mortgages, car loans and loans for jewelry or furniture. You may choose to repay a secured loan as part of your Chapter 7 bankruptcy petition, if you intend to keep the property. In doing so, you will be responsible for signing a reaffirmation agreement, which is a contract between the lender and you regarding your promise to repay the loan under the original terms in order to keep that property.
Schedule a Consultation With a New Jersey Bankruptcy Attorney
If you do not agree to repay a secured loan and do not sign a reaffirmation agreement, the lender can take some of the property, although this is not always the case. The court may schedule a reaffirmation hearing in certain situations, such as when a presumption has arisen regarding the agreement being an undue hardship or claims that a debtor was not represented by an attorney. Scheduling a consultation with a dedicated bankruptcy attorney can give you greater peace of mind.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.