VIDEO: Why You Need a Reaffirmation Agreement in a Chapter 7 Bankruptcy Case

Christy Myatt, attorney with Nexsen Pruet, discusses why you need a reaffirmation agreement in a Chapter 7 Bankruptcy case.

Chapter 7 allows a debtor to discharge certain debts in order to obtain a fresh start. With respect to a secured debt, the individual debtor has 3 options:

  1. Debtor can surrender the collateral back to the secured creditor. Note that the secured creditor will still need relief from stay to sell the collateral.
  2. Debtor can retain the collateral and redeem it by paying the value of the collateral in a lump sum and not in installments over time.
  3. Debtor can retain the collateral and enter into a reaffirmation agreement by agreeing to pay the full amount of the debt over time with interest.

VIDEO: Why You Need a Reaffirmation Agreement in a Chapter 7 Bankruptcy Case

Christy Myatt, attorney with Nexsen Pruet, discusses why you need a reaffirmation agreement in a Chapter 7 Bankruptcy case.

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