Can I Rescind a Reaffirmation Agreement?

Wasson and ThornhillSecured Debts

Yes, you can rescind, or cancel, a reaffirmation agreement. But the deadline to do so is very quick. Know when it is so you can act timely.   Reaffirmation Agreements Our last four blog posts have been about reaffirmation agreements in a “straight bankruptcy” Chapter 7 case. In particular the first of these introduced these special agreements and the second … Read More

Do I Have to Go to a Reaffirmation Hearing?

Wasson and ThornhillBankruptcy Procedure

You only need to go to a reaffirmation hearing if you don’t have a lawyer, or he or she doesn’t sign the reaffirmation agreement.   Reaffirmation Agreement If you want to keep the collateral on a debt usually you have to exclude that debt from the legal write-off (“discharge”) of your debts that you receive in a Chapter 7 “straight … Read More

Reaffirmation of a Non-Current Debt

Wasson and ThornhillVehicle Loans

In theory the terms of a reaffirmation agreement are negotiable. But many creditors require you to be current on the debt to reaffirm it.   Two blog posts ago we introduced reaffirmation agreements, and in the last one we discussed their risks. Today we get into what happens if you are not current on a debt that you want to … Read More

Debt Reaffirmation Comes with Risks

Wasson and ThornhillVehicle Loans

Reaffirmation of a secured debt, like a vehicle loan, can be a great way to keep the vehicle or other collateral. But know the risks.   Last time we introduced reaffirmation agreements as a good way to keep collateral like a vehicle under Chapter 7. Essentially, you get to keep the vehicle or other collateral in return for agreeing to … Read More

Reaffirming a Secured Debt in Chapter 7

Wasson and ThornhillSecured Debts

You are allowed to exclude a secured debt—to keep your vehicle or furniture, for example—by reaffirming and not discharging the debt.   Last time we got into debts that you might voluntarily pay after a Chapter 7 case out of personal obligation. Today we cover debts voluntarily paid but for the purpose of keeping the collateral that’s securing the debt. … Read More

A Hard Lesson Learned

leeannAbout Our Clients

Having to go through the Bankruptcy process never leaves a person feeling good about their financial dilemma. When faced with the prospect of filing either Chapter 7 or 13, as a normal individual we have the tendency to ask, “Why me?”, or state, “It’s not fair!”, or feel, “The whole system is against me…sigh”. But if we are truly honest … Read More

My Journey to a New Start

leeannAbout Our Clients

The Beginning I had carried the burden of insurmountable debt for over three years before coming to the realization that I would never be able to pay off the medical bills I had incurred. I knew of only one resolution to my problem: bankruptcy. It would become my secret shame. I had anguished over this decision. It would be a … Read More

A Debt You Personally or Morally Want to Pay

Wasson and ThornhillBankruptcy Advice

If you feel personally or morally obligated to pay a debt, Chapter 7 allows you to do that, while Chapter 13 puts up roadblocks.   Our last blog post was about debts that you still pay after a Chapter 7 “straight bankruptcy” case. These included debts you might WANT to pay as well as those that you are legally REQUIRED … Read More

Debts Not Discharged in Chapter 7

Wasson and ThornhillEffects of Bankruptcy

Sometimes not all your debts are discharged—legally written off—in Chapter 7. Some you might want to pay; others you legally can’t discharge.   Two blog posts ago we ended by saying that most general unsecured debts get legally written off—“discharged”—in a Chapter 7 bankruptcy case, but that there are some exceptions. We’ll get into those exceptions now. These exceptions include … Read More

General Unsecured Debts in Chapter 13

Wasson and ThornhillChapter 13

Under Chapter 13, unlike Chapter 7, you pay your general unsecured debts as much as you can for 3 to 5 years, although often not very much.   Our last blog post was about how Chapter 7 “straight bankruptcy” deals with “general unsecured debts.” Mostly, they are discharged—legally, permanently written off. There are some exceptions. At the end of the … Read More

How Chapter 7 Deals with General Unsecured Debts

Wasson and ThornhillEffects of Bankruptcy

In a Chapter 7 case your unsecured debts are either priority or general unsecured. Chapter 7 legally writes off all or most of the latter.   Last time we said there are two kinds of unsecured debts, “priority” and “general unsecured”: “Priority” debts are those that the law treats as special for various reasons. Past-due child support and unpaid recent … Read More

Unsecured Debts

Wasson and ThornhillBankruptcy Advice

Unsecured debts are not legally attached to anything you own. They have no security. Certain special unsecured debts are “priority” debts.   Unsecured Debts Debts that are unsecured are those which are not legally tied to anything you own. The creditor has no “security” attached to the debt, no “security interest” in anything. It has no right to repossess or … Read More

Chapter 7 with a Current Mortgage But Other Liens

Wasson and ThornhillHome Mortgages

Here are 3 more Chapter 7 scenarios when you are current on your home mortgage but have other liens on your home.   Our last blog post was about situations in which Chapter 7 works well enough in the following 3 debt situations: Second or third mortgages Property taxes Income tax with a lien recorded on your home In general, … Read More