How does re-affirmation work following a Chapter 7 bankruptcy discharge?
Reaffirmation is a contract; it is a promise to pay. They are special in bankruptcy in that it doesn’t require new consideration because it is essentially a contract to do something that you have already promised that you should do. It is special in bankruptcy in that it is still a valid contract. We have talked about how you don’t have to reaffirm your home. In 2005, the BAPCPA, which was a series of amendments to the Code that got passed, really changed the reaffirmation process because it required reaffirmation agreements to be signed on cars. There use to be something called a “ride-through” where you do your bankruptcy on a car you financed. OK. Your financed car and you are upside down, which most people are when they are financing a car. In a “ride-through” you could just continue making your payments and be current and you could keep your car. Then a year later if you needed to walk, then you could simply surrender your car. The car gets surrendered and it is still included in
Related Questions
- I received a discharge in a Chapter 7 Bankruptcy, but some debts that could not be discharged remain. Can filing a Chapter 13 help me with these debts?
- How long after filing Chapter 7 bankruptcy and going to court does it take to discharge?
- What is a bankruptcy discharge under Chapter 7 of the U.S. Bankruptcy Code?
