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What Does Reaffirmation Agreement Mean

In the event of a Chapter 7 bankruptcy, all your debts are usually destroyed once the case is closed. However, if you buy your home, you can keep it, which means you must formally agree to continue paying the mortgage. Otherwise, these debts will also be eliminated. Chapter 7 exempts the borrower from the debts he or she must pay, but does not eliminate the fact that the lender can claim assets that are pledged. Your personal responsibility over the debt has disappeared, but not the lender`s right to take your assets. Confirmation protects against a lender that collects your assets. Part A – Debtor`s Statements: Summary of the Confirmation Agreement. Fill this section with the details of the agreement: Amount to be confirmed, percentage, payment to be made. Part B – The confirmation agreement requires the signature of the creditor`s representative and the debtor. You need to understand what a confirmation agreement is. Here`s what I know. John has arranged a confirmation with his mortgage company that will be approved by the court.

It reaffirms the debt it owes to the mortgage of the house, with the possibility of renegotiating the payments with the lender. He and his mortgage company agree during the confirmation process of a lower monthly mortgage payment or a lower interest rate. John can make those lower payments with a few odd jobs he could find. Here`s why you need a will and how you can protect what you enjoy most after you leave. Confirmation prevented Jean from closing his house. However, if the lender is unable to make the mortgage payments under the new conditions, the lender will take possession of its home and initiate foreclosure proceedings. In entering into a confirmation agreement, a borrower often retains the possession of an asset held as collateral such as a house or a car, provided that he can repay in full the debts he owes for that specified loan. You have the right to revoke (revoke) any confirmation at any time prior to receipt of your dismissal or within 60 days of filing the confirmation agreement with the court, depending on what happens later. To revoke a confirmation agreement, you must send the creditor a written notice that you are withdrawing your decision to confirm and revoke the agreement.

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