Continued Payments (Reaffirmation) to keep your home, car or other property:
If you have something that you are making payments on, it is SECURITY for the debt, and as described earlier, the creditor can usually get it back. Sometimes lenders ask you to list items as SECURITY, but they have to comply with certain laws under the Commercial Code to have a valid right. If you didn't sign what's called a UCC 9 Form, the lender is probably UNSECURED.
Even in a Chapter 7, Secured Creditors are protected, and they either get paid or get the mortgaged things back.
But if you can afford to keep up payments, and the creditor agrees, you can simply agree that you will not use your discharge on that item. You REAFFIRM the debt, promising to pay it in full. This allows you to keep a car, home or other things even though your other bills are being cleared in the Bankrutpcy.
This is often done for auto and furniture loans. But you must carefully consider whether to REAFFIRM, since you can't avoid payment and collection if you reaffirm the debt.
G. Paul Marx, A Professional Law Corporation 337 237 2537
850 Kaliste Saloom Suite 107, Lafayette, Louisiana
NEW LAW- OCTOBER 17, 2005 BANKRUPTCY REFORM ACT
Chapter 7 Topics: THE DEAL THE TRUSTEE EXEMPT PROPERTY
MORTGAGES, SECURED CREDITORS TRUSTEE ACTIONS
THE U.S. Congress and President Bush have authorized us by law to state that as to our Bankruptcy Work at this Law Firm, WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE.