Reaffirming Debts in a St. Louis Chapter 7 Bankruptcy
When you file a St. Louis Chapter 7 bankruptcy, it is possible to reaffirm existing secured debts. The classic example would be a car loan. If you decide to keep the car, you will have the opportunity to sign a reaffirmation agreement. This agreement basically states that you promise to continue to make regular, monthly payments on the loan until it is paid in full. This in turn will protect your ownership interest in the vehicle, and ensure that you get to keep and make use of it.
A reaffirmation is also possible for rent-to-own items such as furniture and appliances. These debts are technically considered secured because there is a purchase money security interest (PMSI) attached to the financing agreement you signed. As such, you are able to reaffirm this kind of debt as well.
When you file a St. Louis Chapter 13 bankruptcy, secured debts are automatically included in the repayment plan. In other words, debts such as a car note are factored into the monthly payment that you make to the Chapter 13 Trustee. This means that, unlike a Missouri Chapter 7, there is no need to execute a reaffirmation agreement. All secured debts are paid in full in a Missouri Chapter 13.
Of course, it is very important to engage a lawyer with a full background of knowledge and skill in the specialized area of St. Louis bankruptcy law. The St. Louis bankruptcy lawyers at The Law Office of Jennifer Alter-Rieken possess this level of knowledge and experience. Our staff is prepared to help guide you through the bankruptcy process with care and diligence, and get you the fresh start / clean slate that you deserve.