Reaffirming Debts in Chapter 7 Bankruptcy

Posted by Kevin Ryan | Jun 29, 2016 | 0 Comments

The FAQ: “Do I need to reaffirm this vehicle loan in my Chapter 7 bankruptcy Case? The car is 10 years old!”

ANSWER: The answer is no, with some information. A reaffirmation agreement is an agreement that is sometimes filed jointly by the Debtor and ( usually) a secured creditor such as an auto lender or mortgage lender. The only real benefit to the Debtor is that the loan will continue to be reported to the credit bureaus post-bankruptcy because the agreement re-establishes the Debtor's personal liability post-bankruptcy discharge. The Debtor does not (ever) have to file a reaffirmation agreement. In some instances, an auto lender will repossess the Debtor's vehicle if the loan is not reaffirmed during the bankruptcy case, before the Court issues the Discharge Order, even if the Debtor is current with payments before, during and after the bankruptcy case. A mortgage lender will not foreclose if you choose not to reaffirm the loan and remain current with the payments, but they can foreclose if you default. A bankruptcy discharge applies to the Debtor's personal liability in a consumer bankruptcy case ( ch 7, ch 13 and ch 11 individual bankruptcy cases), but it does not affect the lender's lien on the collateral. This is an issue you should discuss with your lawyer. Whether to reaffirm a debt or not is a personal decision, and the reasons to reaffirm and to decline reaffirmation vary from case to case. This highlights the importance of hiring a bankruptcy lawyer who will take the time to meet and discuss your case personally with you, confidentially. Call me. I'll BE there for you.  251-431-6012 

Kevin Ryan, Bankruptcy Attorney

About the Author

Kevin Ryan

"I'll never be the kind of attorney your creditors want me to be. I'll always be the kind of attorney you NEED me to be. Call me. I'll BE there for you. And I'll make them go away."  -Kevin Ryan, Attorney at Law Kevin Ryan is a graduate of the College of Wooster and the Cleveland Marshall College of Law. He is admitted to practice before all Alabama State Courts, the United States District Court for the Southern District of Alabama, and the United States Bankruptcy Court for the Southern District of Alabama. The United States Bankruptcy Court is a part of the United States District Court. Since 1998, Mr. Ryan has represented thousands of individual clients in bankruptcy, criminal, divorce, probate, personal injury, and real estate matters.  Attorney Ryan is also a licensed real estate agent in Alabama.  He handles  Bank-owned properties, short sales, and conventional sales in addition to conventional real estate listings.   This wide range of experience enables Attorney Ryan to take a wider look at your legal matter. It is important to consult with an attorney who can see from experience how other legal issues may affect your situation, and advise you accordingly. Personal Info Kevin Ryan is a member of First Baptist Church in Silverhill, Alabama. He resides in Silverhill with his wife Jessica and their three children. Committed to helping our Clients achieve a fresh financial start Our practice focuses primarily on consumer bankruptcy matters under Chapter 7 and Chapter 13 of the United States Bankruptcy Code.  Our law practice also includes matters where bankruptcy litigation, appellate work, or involvement in civil lawsuits is needed by a client.     No representation is made that the quality of any of these legal services is of higher quality than another attorney or law firm.   The United States Bankruptcy Code requires the following notice:  We are a Debt Relief Agency, which means we help people get legal relief from their Debts through the bankruptcy process. Interested in learning more about our bankruptcy attorney near Mobile, Alabama? Contact Us for help with chapter 7 bankruptcy or chapter 13 bankruptcy in Mobile, Baldwin and Washington counties. Education Juris Doctor, Cleveland Marshall College of Law, 1997 Employed full time as a paralegal while attending law school in the evenings. B.A., The College of Wooster, 1994 NCAA Div.III All Conference (N.C.A.C.) Football Team : Defense 1993; Most Inspirational Senior Award 1993; Co-captain 1993; Letterman 1991-1993; Phi Sigma Alapha Fraternity 1991-1994; Athletic Director Jurisdictions Admitted to Practice Alabama


There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment


We serve the following localities: Choctaw county, Washington county, Clarke county, Monroe county, Escambia county, Mobile County including Eight Mile, Grand Bay, Irvington, Mobile, Prichard, Saraland, Semmes, Theodore, and Tillmans Corner; and Baldwin County including Bay Minette, Daphne, Fairhope, Foley, and Robertsdale.

I'll BE there for you.

I'll never be the kind of attorney your creditors want me to be. I'll always be the kind of attorney you NEED me to be. Call me. I'll BE there for you. - Kevin Ryan, Attorney at Law