Reaffirmation

Reaffirming on debts has become one of the more complicated processes in Chapter 7 bankruptcy cases of late. They are not done in Chapter 13 cases. Reaffirmation agreements are applicable when you have secured debts (usually mortgages or auto loans/leases) and you want to keep paying for the property in order to keep it. It used to be a fairly simple thing to do..but the new changes in the law and some recent changes in how the bankruptcy judges in Minnesota handle these issues have made it well....lets call it "interesting."

Keeping houses and cars are ALWAYS an item of concern for people going into bankruptcy case. You've got to have somewhere to live and you need a car to get to work...right? Right. Put it this way....if you can afford to make the payments...then you won't have a problem...we will work it out for you. Now, it may be advisable in some circumstances to give property back. These days with the bursting of the real estate bubble we've got clients with homes worth tens of thousands of dollars less than what it owed on them...so we've got quite a number of people surrendering real estate...especially investment properties. Cars...sometimes it makes sense to give cars back too if you owe a lot more on them than they are worth and you can find some alternative transportation.

Whatever the case, we will go through all your options about reaffirming or not reaffirming on those kinds of debts and steer you through that process.