Completing a Reaffirmation Agreement: A Step-by-Step Guide

If you`ve recently filed for bankruptcy and have a secured debt, you may be asked to complete a reaffirmation agreement. This document is an agreement between you and a creditor that allows you to continue making payments and keeping the property that secures the debt. Here`s a step-by-step guide to completing a reaffirmation agreement.

1. Review Your Options

Before you sign a reaffirmation agreement, it`s essential to review all of your options with a bankruptcy attorney. In some cases, you may be better off surrendering the property and discharging the debt. However, if you want to keep the property and continue making payments, you`ll need to complete the reaffirmation agreement.

2. Obtain the Form

You can obtain a reaffirmation agreement form from your bankruptcy attorney or the court. The form will include information about the creditor, the property, and the terms of the agreement.

3. Complete the Form

You`ll need to provide information about your income and expenses to complete the reaffirmation agreement. You`ll also need to provide details about the property, including the amount owed, the interest rate, and the monthly payment.

4. Sign the Form

Once you`ve completed the form, you`ll need to sign it and file it with the court. You`ll also need to provide a copy to the creditor.

5. Attend a Hearing

In some cases, the court may schedule a hearing to review your reaffirmation agreement. The judge may ask you questions about your finances and your ability to make payments. If the judge approves the agreement, it will be binding, and you`ll need to continue making payments.

6. Stay Current on Payments

Once you`ve signed a reaffirmation agreement, it`s essential to stay current on your payments. If you miss payments, the creditor can repossess the property, and you may be responsible for any remaining balance.

In conclusion, completing a reaffirmation agreement is a critical step in keeping your secured property after bankruptcy. By following these steps and working with a bankruptcy attorney, you can navigate this process smoothly and ensure that you`re making the best decision for your financial future.