A reaffirmation agreement is an agreement between you and a loan provider stating that you will continue to pay on a debt that could have been discharged during bankruptcy in return for being allowed to keep a piece of personal property (an automobile, for example).
While reaffirming a debt can help ensure you keep your car, house or other piece of property, entering into a reaffirmation agreement may not always be in your best interest. It is possible that you will be unable to continue meeting your payment obligations even after a majority of your debts are discharged through bankruptcy. In that case, you could find yourself facing repossession or foreclosure again in just a few short months. It is also possible that there are other ways to keep your property.
Talking your situation over with a qualified bankruptcy attorney is your best chance to better your financial situation and meet your goal of keeping your car or house.
Michigan Bankruptcy attorney Lander McLoyd is an experienced consumer law attorney. If you have questions about filing for Bankruptcy in Michigan or need to know more reaffirmation agreements, contact Lander McLoyd for a free Bankruptcy consultation. We're here to help!