Reaffirmation Agreements In Bankruptcy

During bankruptcy, all of your debts are discharged. While most — if not all — of your properties are protected during this process, it may be necessary to reaffirm the debts on “secured property” if you wish to keep it.

Located in Alexandria, the McBride Law Firm helps individuals throughout central Louisiana obtain reaffirmation agreements after discharging their debts through bankruptcy so they can keep their secured properties.

Modify Discharges Of Debt

Secured properties are those that have loans attached to them. When you borrow funds to purchase items, creditors have a “secured interest” or a “lien” on that property. When these interests are eliminated during bankruptcy, creditors may take the properties back.

A common example is a car. When you take out a loan to buy a car, your bank has a lien on the car. During bankruptcy, this loan is discharged. However, if you want to keep your car, you will have to “reaffirm” or reinstate the loan and continue making car payments.

A reaffirmation agreement is made between you and your creditor, and reinstates the loan, or debt, that was wiped out by bankruptcy. Once you sign the agreement, you are legally responsible for the debt and must make payments on the loan. Reaffirmation agreements need approval from the bankruptcy court in order to be effective.

Creditors are often willing to reduce interest rates or make other concessions in order to prompt a reaffirmation.

By eliminating your other debts, you may be able to afford your car or mortgage payments. At the McBride Law Firm, we help clients affirm debts — such as car loan and mortgages — so they can keep their properties.

More Than 30 Years Of Experience

Clients turn to the McBride Law Firm when they want local legal representation. Our lawyers work and live in the local community. We understand the negative impact debt has on our clients’ lives and do everything in our power to help clients’ eliminate their debts and get a fresh start.

At the McBride Law Firm, clients have an experienced attorney personally overseeing every aspect of their case.

Call For A Same-Day Or Next-Day Appointment

At the McBride Law Firm, we offer free same-day or next-day appointments so you don’t have to wait to start the bankruptcy process. To schedule your free consultation, contact us at 318-445-8066. Walk-ins are also welcome.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.