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Bankruptcy Law/Re-affirmation
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Question
My wife and I have just filed chapter 7, can we re-affirm our mortgage and two cars on our own without the use of an attorney? If so, what must we do?
Theoretically, yes you can reaffirm these obligations provided the lenders are agreeable, and provided that the court decides to approve them. You do not have to have an attorney, but I think it is advisable, because the is a huge amount of money and personal debt liability riding on such a decision. If you reaffirm a debt that turns out to have been a bad mistake, it may be a decision that destroys your financial future.
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Here are the basics: Generally the creditor will prepare the written agreement form if you ask them to. If you don't have an attorney, you are required to appear at a court hearing for court consideration of each agreement. The court may approve any such agreement, or deny it if the court feels the agreement is not in your best interests or would impose an undue hardship on you.
An advantage of having a reaffirmation agreement is that the payment history on the account can be reported on your credit. If you always pay on time, this will help to rehabilitate your credit. However, there are drawbacks, serious ones, to a reaffirmation agreement.
The drawbacks are covered in my Bankruptcy Guide, at http://www.debt-relief-bankruptcy.com/faq-browse11-11/bankruptcy-guide.asp . All three parts of the Reaffirmation article may help you to navigate your way through the process. However, I feel that everyone will benefit from the representation by an experienced attorney.
I do hope everything in your case works out well for you.
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Answers by Expert:
Los Angeles Bankruptcy Lawyer Leon D. Bayer
Expertise
Leon Bayer has successfully represented clients in bankruptcy for over 30 years. He is frequently called upon by the media, the California Bar and other associations to provide insight and help educate attorneys on bankruptcy issues. You can learn the basics of local bankruptcy practice in Los Angeles from his Human Bankruptcy Guide at http://www.thebankruptcyguide.net/, follow his Los Angeles Bankruptcy Blog at http://bankruptcyblogger.org/category/bankruptcy-in-the-news/, and visit his Los Angeles Bankruptcy Lawyers/Attorneys web site at www.debt-relief-bankruptcy.com. Personal and small business bankruptcy. Mr. Bayer has successfully handled thousands of bankruptcy cases. You can view his personal web site at:
www.debt-relief-bankruptcy.com
You can view his personal blog site at:http://www.bankruptcyblogger.org/
and http://www.thebankruptcyguide.net/ If you or other readers want to keep up with my blog postings about life in and out of bankruptcy, you can follow my blog at http://www.bankruptcyblogger.org/ and my personal web site at http://www.debt-relief-bankruptcy.com and A Human Guide to Bankruptcy at http://www.thebankruptcyguide.net/Experience
Leon is a Certified Specialist in Bankruptcy Law by the State Bar of California, and has been a practicing Bankruptcy lawyer for 32 years.
Publications
Author, ?The Essentials Of Chapter 13,? Daily Journal Report, December 18, 1987.
Contributing Editor, Basic Bankruptcy, California Practice Handbook, Matthew Bender 1992, 1993.
CEB Consultant, CEB-Personal and Small Business Bankruptcy Practice in California, 2003.
Education/Credentials
B.A., J.D.
Awards and Honors
President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory
Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000
MR. BAYER SAYS: The big banks and credit card companys have been working overtime for many years to undermine the Consitutional right of the American people to be able to claim bankruptcy protection. In 2005 the banking lobby successfully convinced Congress and the President to make the laws and proceedures more complicated, hopeing that it will stymie legitimate people from filing bankruptcy. They succeeded in gaining these complex new legal proceedures by greasing the legislative system with hundreds of millions of dollars in "campaign contributions." The good news for the American people is that while the new laws have made the proceedures needlessly complex to the point where inexperienced people can't help but trip over the maze of new rules and regulations, the process is still doable, especially with a lawyer who is well trained and experienced in this specialty.
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