Reaffirmation of Secured Debt in Bankruptcy | Orlando Lawyer

Helping People Retain Property

When you file for bankruptcy, it is likely that you will have to give up some of your property. Although there are exemptions that allow you to keep a good deal of property, some items may not fit an exemption or will otherwise be subject to repossession. If you have property that you wish to keep, an experienced lawyer can help you decide whether reaffirming the debt is a good option for you.

At the Law Office of Paul L. Urich, P.A., we are dedicated to helping people find relief from overwhelming debt through the bankruptcy process. Since 1997, attorney Paul Urich has devoted his career to finding workable solutions for people going through difficult financial times. We understand the stress and uncertainty you are feeling, and we are ready to help you confront the issues and begin the process of recovery.

To arrange a free initial consultation with an experienced Florida bankruptcy lawyer, please call 407-896-3077 or contact our Orlando law firm online.

What Is Debt Reaffirmation?

Debt reaffirmation happens most often in a Chapter 7 bankruptcy. When you file Chapter 7 (or Chapter 13, for that matter), essentially what happens is contracts between you and your secured creditors are broken. You can then ask the bankruptcy court to remove certain items from the bankruptcy estate, telling the court that you will pay the debt rather than have the item repossessed and sold. For example, many people ask to reaffirm their car loan because they want or need to keep their vehicle.

How Does It Work?

Normally, debt is reaffirmed under the same terms as existed in the original contract. Before allowing reaffirmation, the court will analyze your income, expenses and the value of the item. If reaffirmation is allowed, you have 60 days to change your mind. After that, the contract becomes permanent and you must pay accordingly. If you do not, the item can be repossessed by your creditor.

Items that are often considered for debt reaffirmation include:

  • Automobiles
  • Furniture
  • Appliances
  • Recreational vehicles like boats or motorcycles
  • Jewelry

Some creditors are more likely than others to repossess certain items. Debt reaffirmation can be very useful if you are involved with these aggressive creditors, because your item will not be repossessed as long as you are making payments on time.

When you visit our law firm, we will give you an honest assessment of your situation and advise you on whether it would be wise for you to reaffirm debts. We want you to understand the potential outcomes of every choice you make during the bankruptcy process because we want to see your situation improve.

Contact an Orlando Reaffirmation Agreement Lawyer

To learn more about reaffirmation of secured debt in bankruptcy, schedule your free initial consultation by calling 407-896-3077 or by contacting our law firm online.

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

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