What is a Reaffirmation Agreement? One of the most common reasons people delay filing for bankruptcy is out of concern they will lose everything. Personal bankruptcy allows consumers the ability to start over again free of the burden of unreasonable or unmanageable debts. The bankruptcy court allows them to retain some of their personal property and assets so that they can have the basic foundation necessary to begin rebuilding their financial home after the process is complete.
One way you can protect your personal property during the bankruptcy procedure is through bankruptcy exemptions. California has two sets of exemptions, and our Los Angeles bankruptcy lawyer can help you decide which may be most beneficial for your situation if you are considering filing for bankruptcy. Both chapter 7 and chapter 13 bankruptcy proceedings allow for exemptions of a certain percentage of personal property. Another way you may be able to retain your property is by signing a reaffirmation agreement. Reaffirmation agreements are new and binding contracts between debtors and creditors. These agreements can allow you to continue making payments on property you wish to keep, such as a vehicle or mobile home. Reaffirmation agreements can help you hold onto property you need for work or personal reasons, or they can protect cosigners from creditors after your bankruptcy has concluded. When you are considering a reaffirmation agreement, the advice of a seasoned bankruptcy attorney in California is crucial. The agreement should protect your rights and interests and not place an undue financial burden on you or your family. The bankruptcy court may require proof that you will be able to make payments on this new contract before it approves your agreement, and you will have a period of time after signing the new agreement during which you can still revoke it without penalty if you decide you cannot afford the payments or do not want the property. When you are considering chapter 13 or chapter 7 bankruptcy or business bankruptcy, our bankruptcy lawyer in California can help. Contact us today to schedule your consultation or to learn more.
Source: Hamid Soleimanian, Bankruptcy Attorney Los Angeles |
FREE Consultation
Testimonials
Samuel- Woodland Hills, CA
My wages were being garnished, and I was getting sued by creditors. I could not pay my debts to credit card companies. Hamid Soleimanian filed a chapter 7 bankruptcy for me and stopped my wages from b...