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
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
Sometimes, even if what you bought is legally collateral on a debt, you can just write off and not pay the debt yet keep what you bought.
A secured debt effectively turns into an unsecured debt if you surrender the collateral, which may make sense to do more than you think.
How does bankruptcy treat something you bought–furniture, an appliance, or some electronics–when that thing is collateral on a debt?