Notice of a stand-by arrangements bankruptcy attorney

As a bankruptcy lawyer, I spanked fun pieces of mail from time to time. This exhibit has found its way to my Office a few days ago. He asked if my client had filed Chapter 7 bankruptcy wishes to reaffirm its mortgage. I never recommended that one of my customers conclude a reaffirmation agreement and this time it is no exception.

For those of you not already versed in the jargon of the bankruptcy, an agreement confirmation acts as a waiver of the right of the debtor have denied special debt.As most of you know, in case of bankruptcy the personal liability of the debtor on debt majority are rejetés.Toutefois, if the debtor has concluded an agreement confirmation, obligation of the debtor to the creditor survives intact bankruptcy process.

In the case of my client, the obligation in question was the ticket $ 300,000 that he had signed with the lender when he bought his house. If he refused to sign the reaffirmation, personal to make the monthly mortgage payment liability could be extinguished by bankruptcy.(This does not mean that he could stop the payment of the mortgage and live in house free of charge, but the reasons which are subject to another position) .absents a reaffirmation, the lender could not continue it for non-payment of the mortgage after it gets released from bankruptcy. In addition, even in the absence of a reaffirmation, the lender could not lock him just for the filing of the bankruptcy.

You're probably thinking, if the lender wants to my client to reaffirm a debt of $300,000, even if it can remain in his house without signing a reaffirmation, they must be offered something very valuable in return, right? bad.In Exchange, they offered to keep his account of mortgage loan to credit bureaus.Otherwise, the letter said the lender will report to the debt as released in bankruptcy and that disclosure will negatively affect customer's credit score (regardless of the public folder search section of the credit report will show the bankruptcy filing anyway).

I guess it's territory, but sometimes as a bankruptcy attorney I enough to wonder what people are thinking when they request an individual agreement made unilatéral.En, these agreements are historically so unilateral bankruptcy court must approve their forward that the debtor may conclude leur.Je advises anyone given to conclude an agreement confirmation is that no reference positive credit worth as much as the lender is usually ask.

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