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Debt reaffirmation

Helping People Retain Property

When you file a petition with the bankruptcy courts you may not be able to retain all of your assets. While much of your property will be exempt from creditors, other items could be repossessed. If there are vehicles or other property you wish to retain, you may have the option of reaffirming the debt. An experienced bankruptcy attorney can help you decide whether to keep certain assets and how to do this with minimal negative consequences, both financially and legally.

At SunCoast Law, we know the stress and uncertainty you face as you work to find solutions for overwhelming debt. Whether your financial difficulties stem from loss of employment, illness, or heavy credit card use, we want to help. Only when you confront financial issues and take steps to make changes, will you begin the recovery process necessary to rebuild credit, and your future.

What Is Debt Reaffirmation?

When filing for bankruptcy, whether Chapter 7 or Chapter 13, any prior contract made between you and your creditors is essentially void. Within bankruptcy, however (usually Chapter 7) there is still an opportunity to keep some of your property, rather than allow it to be repossessed and sold at auction. Many people need their car to continue to work, so it is common for individuals to request reaffirmation of auto loans.

How Reaffirmation Works?

In general your assets are reaffirmed according to the original contract and under the same terms. Reaffirmation of debt is not automatic and must be approved by the Court. They will examine the value of the property, your income, and expenses. If they allow reaffirmation, you will have 60 days to change your mind before the agreement becomes permanent. Once you reaffirm debt you will be required to make payments on time according to the terms of the loan. If you fall behind, your lender has the right to actively pursue collection on the account, and even repossess the property if necessary.

Consumers who file bankruptcy may choose to reaffirm debts such as:

As a standard rule some creditors are more likely to repossess property than others. If your loan is held by one of these aggressive lenders, debt reaffirmation can work to your advantage. As long as you make the agreed upon monthly payments on time, the lender cannot repossess your property.

When you visit our office, SunCoast Law will honestly assess your credit situation and advise you whether reaffirmation of debt is right for you. We will review the potential consequences of every option involving debt relief.

To find out more about secured debt and reaffirmation, consult with one of our SunCoast Law at, (844) 330-2727.

We offer debt relief solutions in compliance with U.S Bankruptcy Code.


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Chapter 7 Bankruptcy

Chapter 13 Bankruptcy

Chapter 7 vs Chapter 13

Chapter 13 Bankrutpcy Timeline


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If you need to find a solution, contact a member of our team. SunCoast Law can help! We offer free initial consultations to all of our clients and would be happy to meet with you one-on-one.

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