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San Fernando Valley Reaffirmation Agreements Lawyer

If you want to keep a secured debt (such as a vehicle) after filing Chapter 7 bankruptcy, you may be considering a reaffirmation agreement. A reaffirmation agreement is a new contract between you and the lender, promising that you will continue to make payments in exchange for keeping the property.

At the Law Offices Of Hagen & Hagen in Los Angeles County, we advise individuals throughout Southern California about the pros and cons of such agreements. We also assist with all aspects of bankruptcy.

Advantages Of Reaffirming Debts

  • By reaffirming a secured debt, it is possible (although not always likely) that you may be able to negotiate better terms with your lender.
  • By reaffirming the obligation, the lienholder may be more willing to give you a chance to reinstate the obligation instead of insisting you to pay off the entire balance, should you lose the collateral to repossession.
  • Reaffirming a pre-bankruptcy debt may give your credit report a slight positive bump.

Disadvantages Of Reaffirming Debts

If you fail to make any of the payments required by the reaffirmation agreement, the lienholder can not only repossess the property, but it also has the right to pursue you for the remaining balance. It would be like you never filed bankruptcy in respect to this one debt, and you would again be in danger of wage garnishment, creditor harassment and more.

Our General Recommendation

The primary purpose of filing a bankruptcy petition is to take advantage of the "fresh start." As a general rule, we encourage our clients to take advantage of their discharge and not reaffirm the very same pre-bankruptcy obligations that may have contributed to their current financial troubles. Every case is different, however, so talk with our lawyer to see how reaffirming a debt may affect your individual situation.

Talk To An LA County Debt Discharge Attorney Today

If you want to keep your home or car after filing for Chapter 7, schedule a free initial consultation with an experienced San Fernando Valley reaffirmation agreements attorney. You can also read additional information online. Call us at 818-305-6452 or e-mail us today.

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