Streamwood Bankruptcy Attorney And Reaffirming Debt

You have to eliminate the bulk of your debt before you can reaffirm on a particular debt claims Streamwood bankruptcy attorney.  The process starts with the client coming in for a free initial consultation.  During this consultation, we will go through a bankruptcy intake questionnaire which will list all of the assets, liabilities, income and expenses of the debtor.  During the course of this intake questionnaire, I will point out to the debtor any issues that I see such as non-dischargeable debts, transfers that can be undone or other purchases that might have to be repaid.  For example, if somebody purchases a TV, furniture, jewelry or electronics within a certain number of days prior to filing, then those debts are typically going to have to be repaid through what’s known as a reaffirmation agreement.  

A reaffirmation agreement is an agreement that survives the bankruptcy case, putting the debtor back on the hook for that debt in exchange for the debtor being allowed to keep that item.  The most common form of a reaffirmation agreement relates to an automobile.  Most people want to keep their automobile and continue to make their payments on that as they get out of other debt.  The auto lender will allow that individual debtor to reaffirm the debt provided they are current on the obligation and agree to make payments going forward.  The agreement has to be signed by the attorney and by the client and must go through the scrutiny of the bankruptcy judge.