What Debts Should You Reaffirm?
Let’s say you’ve decided to declare Chapter 7 bankruptcy. As a general rule, you’ve decided to shed your debts and start with a clean slate. Of course, you’ve also decided to sacrifice many of your assets in order to pay your creditors as much as possible.
As with all rules, there are exceptions. And one of the biggest exceptions to the general rule of shedding your debts in Chapter 7 bankruptcy is whether to reaffirm certain, particularly valuable debts. Reaffirming your car debt, for instance, may ensure that you keep your car – a particularly valuable asset for your post-bankruptcy financial future.
Reaffirming your car loan isn’t just about keeping your car. It’s about ensuring that you have any car after your bankruptcy. Although a Chapter 7 bankruptcy can serve many valuable strategic ends, it comes with costs. Most notably, you may have to go months – and even years – without meaningful access to credit. Reaffirming certain debts, such as your car loan, may let you hold on to assets that you might not otherwise have.
Do you have questions about the strategic nuances of your personal bankruptcy? Hope is not a plan; if you’re in need of a meaningful plan for personal financial restructuring, the attorneys at the Dallas law firm of Fears Nachawati can answer all of your pressing, important questions. Contact us today for your free consultation. We’re ready to help.