What To Do After Reaffirmation Agreement

At a confirmation hearing, the judge will ask questions to decide whether the court should approve or deny your confirmation agreement. Typical questions are whether you are up to date on credit payments, whether you have equity in the vehicle, whether you understand the terms of the agreement, why you want to confirm that debt and whether your monthly expenses exceed your income and, if so, how you intend to pay the monthly payments of the confirmation agreement. No no! Even if you feel like you`re in a troubled no man`s land when it comes to your car loan, you don`t have to pay indefinitely. The credit conditions are the same as before. As long as you have left the number of payments on the loan when your business was filed, you will eventually repay your auto loan. While each bankruptcy judge has his own rotation on how he handles his confirmation hearings, they often involve a conversation between the judge and the person who is bankrupt and who is seeking confirmation. One in three things happens: you have opportunities to do anything with a car credit if you file a Chapter 7 bankruptcy case. A confirmation agreement can lead to new debt problems if you default your credit payments. Once your debt has been repaid with Chapter 7 relief, you cannot declare Chapter 7 bankruptcy for eight years. Confirmation of a car loan is risky because the limits of how often you can apply for insolvency protection are limited. It`s not a bad idea to talk about all this with a bankruptcy lawyer if you`re not sure what to do with your car. Let`s take a look at all the possible results and what it means for someone who confirms their auto loan. If the judge does not approve of the confirmation agreement, that is generally considered a good thing.

Your personal liability for an unconfirmed guaranteed debt will be discharged. Even if you are insolvent afterwards, the creditor cannot come after you to get a deficit balance. A confirmation agreement in U.S. bankruptcy law refers to an agreement between a creditor and the debtor who waives debt relief that would otherwise be alleviated as part of the ongoing bankruptcy proceedings.

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