A reaffirmation agreement might help you keep assets
There’s really no need for you to struggle for years or even decades in an attempt to escape what ultimately amounts to inescapable debt. Doing so only leaves you with depleted resources and overwhelming stress. Yet, if you’re like most people, then you’re probably a little hesitant about considering bankruptcy. You shouldn’t be, though. Bankruptcy can provide you with very real debt relief that can set you on the path to a fresh financial start and financial stability.
Worried that bankruptcy exemptions won’t be enough?
Bankruptcy exemptions go a long way toward helping you secure stability post-bankruptcy. They allow you to keep certain items of personal property and even some of the equity that you’ve built up in your home and your vehicle. Despite the assistance provided by bankruptcy exemptions, though, many people find themselves concerned that it won’t be enough to allow them to maintain their normal day-to-day life. Fortunately, there’s a way to make sure you have what you need post-bankruptcy.
Consider if a reaffirmation agreement is right for you
A reaffirmation agreement is where you choose to pull an asset out of bankruptcy proceedings and instead reaffirm the debt tied to it. For example, if you want to keep your car rather than selling it and keeping the equity allowable by law, then you can keep the vehicle, preventing it from being sold during the bankruptcy process, and enter into a reaffirmation agreement with you lender. You might be able to renegotiate the terms of the loan and, since you will have recently discharged other debt, you should have the resources needed to stay current on that debt and retain your asset.
Bankruptcy assistance can put you on the right path
The bankruptcy process is full of nuances. You need to understand all of the legalities associated with the process, though, as that’s often the best way to set you on a path to success. To learn more about what bankruptcy can do for you and how to best pursue it, reach out to an attorney you trust to deal with your financial future.