Before You Sign a Debt Reaffirmation Agreement
A reaffirmation agreement is an agreement between a borrower and a lender in which the borrower agrees to repay a debt, even though that debt could have been discharged in bankruptcy. Often, an individual will choose to reaffirm his or her debt to continue to own that particular piece of property, be it real estate, a car, or a recreational vehicle.
Before you sign a reaffirmation agreement, talk over your options with a knowledgeable bankruptcy attorney. Reaffirming your debt may not be in your best interest. There may be ways to keep your property that do not include debt reaffirmation.
I am attorney Martin Krall, and I can help you understand your options throughout the bankruptcy process. Since 1979, I have been representing people just like you who are overwhelmed with debt. If you want to continue to own a particular piece of property following bankruptcy, we can discuss options which may or may not include signing a reaffirmation agreement.
The Risk of Signing a Debt Reaffirmation Agreement
Most people who choose to reaffirm a particular debt anticipate that their financial situation will improve following bankruptcy. This is not always the case. If an individual loses a job or faces a big expense following bankruptcy, it may become difficult to continue to make payments on the reaffirmed property. Although reaffirmation can be a valuable tool for people who want to continue owning a car or house, it pays to talk over additional options with a bankruptcy lawyer.
Contact Us — Free Consultation
If you are exploring your debt relief options, you can't afford to pass up a free consultation with an experienced lawyer. Contact me online today. My firm serves people in and around Macomb County, Michigan, in areas including Roseville, Warren, Sterling Heights, St. Clair Shores, and Clinton, Harrison, Macomb and Shelby townships.
