When you are struggling with debts, you have the option for debt reaffirmation, debt consolidation, surrendering of property or bankruptcy. Dallas based bankruptcy law firm Recovery Law Group says that when you reaffirm any debt, you reach an agreement with the creditor who holds secured lien on collateral previously purchased by you. this way you reaffirm the debt you owe to the creditor. When you file for Chapter 7 bankruptcy, you can either surrender the property (car or home), redeem the collateral (refinance it with another finance company) or reaffirm the collateral (sign an agreement with the creditor and file it in court).
When you reaffirm any debt, you will be responsible for paying it back irrespective of bankruptcy. in case you fail to do so, the property will be repossessed by the creditor. This can take place for both car and home. If you are filing for bankruptcy under Chapter 7 and you wish to keep your property, you need to reaffirm the debt with the creditor or mortgage company.
To know more about the debt reaffirmation agreement, call 888-297-6023 to speak with experienced bankruptcy lawyers.