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Bankruptcy Chapter 7 Reaffirmation Agreement

All judges allow debtors who appear by telephone at confirmation agreement hearings. Please visit the assigned judge`s website for more information on telephone representations. When a debtor chooses to assert a debt, that plan must be clearly expressed in the Memorandum of Understanding on Chapter 7 submission. As part of the confirmation agreement, secured debt creditors are required to provide mandatory loan information, including monthly payment, interest rate, balance and security description. Only the creditor has access to all the information necessary to present this aspect of the confirmation agreement. Once this information has been collected and both parties – creditors and debtors – have signed the confirmation agreement, most repayment contracts are identical or similar to the original credit terms. If you file for bankruptcy, your property will be part of the “bankruptcy mass.” The agent assigned to your case has access to your bankruptcy mass and can liquidate or sell the assets that are part of your bankruptcy mass. However, this is offset by exceptional laws that allow you to protect all or part of your property. A confirmation agreement is a contract that you can enter into, in which you declare that you remain responsible for a debt in order to keep the property. In other words, it is a promise to be paid in exchange for preserving the property you want to keep. To enter into a confirmation agreement, you must be up to date with your payments and all equity of the property must be fully protected by your exceptions. As a general rule, in Chapter 7 cases, confirmation agreements apply to a car.

An alternative to a confirmation agreement is to value the property for its current value. The problem is that you have to have access to a package that many people do not have. A debtor may want to pay a debt while those debts would be relieved in the event of bankruptcy. For example, a debtor may keep a vehicle. As a promise to repay these debts, a debtor must enter into a confirmation agreement with the creditor.