What is a reaffirmation agreement? A reaffirmation agreement is an agreement you enter into with a secured creditor which is holding a car title, a lien on furniture you purchased on credit or a security deed on your home or other real property. Simply put, you and the secured creditor enter into a written agreement, while in the bankruptcy, in which you agree to pay the creditor and the creditor agrees to let you keep the property. Once your grace period in which you can change your mind and reject the agreement passes, you are stuck with the debt as though you never filed bankruptcy against the creditor; therefore, you should not enter into reaffirmation agreements lightly! You should thoroughly discuss reaffirmation agreements with your attorney before entering into any such agreement.
"Jerry Daniels is an excellent and extremely thorough attorney. He looks at every possible angle of a case to be totally prepared for all contingencies. I found his knowledge of the law and courtroom abilities to be outstanding. It was very reassuring to have an attorney whom I could trust during what was a difficult personal crisis." - W.R.
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It is important to remember that you have 60 days after the reaffirmation agreement is filed with the court or before the case is discharged, whichever is later, to change your mind and reject the agreement and no longer be responsible to pay the debt you reaffirmed. In order to reject the agreement you must notify the creditor of your intentions within the 60-day period noted above or prior to the discharge, whichever is later. You may do this by writing the creditor and notifying them of your intention to reject the agreement. However, the best way to reject the agreement is to file your notice with the Bankruptcy Court where you filed your case and send a copy to the creditor. If you want your attorney to notify the court and the creditor of your wishes to reject the agreement, a fee is involved. Since there is no way your attorney can tell in advance of your intentions to reject the agreement, he did not include the preparation of the notice in his fee. To have your attorney file and serve the rejection notice, within 40 days of the filing of the reaffirmation agreement, do the following: 1) make a copy of the agreement; 2) write a note or letter to the attorney which says that you want to reject the agreement; If you are not certain of the date on which the agreement was filed with the court, start counting the days from the date on which you signed the agreement. Also, if you do not have a copy of the agreement you must make an appointment with this office to come in to make arrangements to reject the agreement. Please bring the fee with you as we require payment before we file the rejection notice. NOTE: Since it is difficult to determine when the discharge will occur, we strongly recommend you use the 60-day period in which to reject the agreement.
From our office in Lawrenceville, our lawyers represent clients in communities throughout Gwinnett County and Walton County, Georgia. Call us at 770-962-4070 or contact us by email to arrange a free consultation with one of our experienced Lawrenceville bankruptcy lawyers today. At your first meeting, we will determine if you should file for bankruptcy and what information you will need to get started.
By Tony Taylor