Reaffirmation Agreement Tips

: Reese Baker & Associates

  Filed under: Loans

home, furniture, possessions, electronics, for sale, foreclosure, court, bankruptcy attorney houston, texas bankruptcy lawyers, attorney, lawyer, attorneys, lawyers, College Station, Bryan, Houston, Texas, TX, lawyers in houston, bankruptcy attorney,When you file for a Chapter 7 bankruptcy and have secured personal property loans, you have a choice as to whether you want to relinquish the item be it a car, furniture, electronics or something similar or reaffirm the debt and continue paying for the item even after your discharge.

The opportunity to renegotiate the debt is usually present when this occurs and you may have an opportunity to save a substantial amount when you renegotiate. Because the value of the item may be considerably less than when originally purchased, the creditor will most likely not want to re-possess the item and try to re-sell it themselves as they will lose a considerable amount of money.

In those cases the creditor will most likely give you a favorable deal if you try to renegotiate instead of choosing to relinquish the item. There are some exceptions to that of course. If you are trying to renegotiate with a major car companies finance company they will seldom lower the debt amount of even the interest rate and will in most cases happily take back the automobile and re-sell it. If, however, you have taken out a non-purchase loan on your car from another source they will be the opposite and will most times renegotiate a new deal so they are not forced to try and sell the car to recoup their money.

The same goes for furniture and electronics dealers as they know they will seldom get the amount back that is owed in re-sale. Do your homework and be sure to contact a qualified bankruptcy attorney in Texas or trustee to get the advice you require to navigate these unfamiliar waters.