New Bankruptcy Law Secrets
Keeping an Asset Through Bankruptcy
In some cases
surrendering the asset may be the best option. It eliminates a payment at at the same time
eliminates the debt behind it. You should be aware that by eliminating the debt you may be
disqualifying yourself from a chapter 7 bankruptcy. As always, ask your lawyer.
Another popular options is to offer to reaffirm the debt by signing a new contract that will survive the bankruptcy process. You will be obligated to continue making payments despite filing for bankruptcy protection. Or your creditor may offer a reaffirmation when they first hear of your intent to resort to bankruptcy.
Other creditors won't be interested. Policies vary widely.
If
you can find the funds, a redemption is a third option. You make a single lump sum payment
and retire the debt.
In certain states you can simply continue to make payments on schedule and eliminate The
debt from your discharge list. Real estate is usually covered in those states that allow
the voluntary payment option.
In
general, individuals who own significant assets will usually avoid a chapter 7 bankruptcy
and opt for the chapter 13 repayment plan which allows them to keep all or most of their
assets.
© Copyright 2006, Ariza Research, All rights reserved
– ABP |
 |