When filing Chapter 7 bankruptcy, there are three choices for dealing with secured debts: reaffirmation, redemption or surrender. Reaffirming debts in Chapter 7 bankruptcy is a process that lets a filer hang on to the property attached to the debt.
Here's a closer look at debt reaffirmation.
One reason a filer might choose to reaffirm a debt is to keep necessary belongings (like a vehicle). The process of reaffirmation typically works like this:
Both of these choices allow filers to keep their property, but one usually works better than the other, based on the individual's circumstances. Here’s a look at the key differences.
If you're interested in learning whether reaffirmation or redemption of debts would make the most sense in your Chapter 7 filing, you can take advantage of this offer for a free legal consultation. Simply fill out the case review form below to speak with a bankruptcy lawyer near you today.