After filing for a bankruptcy, in some instances a debtor may choose voluntarily to enter into what is called a reaffirmation agreement. Reaffirmation is a promise to pay a specific debt, adhering to a specific payment plan, and waives the discharge of that particular debt. A reaffirmation of a debt does not impact the bankruptcy ruling or the actions of the bankruptcy trustee, and both the debtor and the creditor must agree to sign the reaffirmation agreement. Reaffirmation agreements are not required by law, and they may be cancelled at any time before the bankruptcy debt discharge deadline, or within 60 days after the agreement has been filed with the court.
Not all creditors or lenders will recognize or opt to participate in a reaffirmation agreement. Also, creditors may later need to seek legal remedy, such as a judgment, against a debtor who has signed a reaffirmation agreement and then fails to pay the debt. In the case of secured debts such as mortgages, the creditor may take action to recover any property secured by a lien.
The use of reaffirmation agreements in the District of Arizona is an intricate process. Creditors are best served by engaging experienced attorneys to assist with this course of action.
If you would like more information about reaffirmation agreements, creditors’ rights, or if you need assistance from an attorney, contact Windtberg & Zdancewicz to schedule an initial consultation.
The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation in all collection matters. We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases. If you need assistance with your collection matters, please contact us at (480) 584-5660.