Oklahoma Bankruptcy HelpWhat is Reaffirmation in Oklahoma Bankruptcy?

Understanding reaffirmation in Oklahoma bankruptcy law can make the difference between keeping certain property despite filing for bankruptcy in Oklahoma.  At its core, a reaffirmation is an agreement, made between the debtor and the creditor after the filing of bankruptcy in which the debtor agrees to pay all or a portion of the debt owed on the purchase of a piece of property that secures the debt. In exchange, the debtor gets to keep the property despite filing for bankruptcy. In essence, the debtor “reaffirms” their willingness to keep on paying on the debt in order to keep the property. It is most often used for non-exempt properties such as homes, cars, and boats.

Reaffirmation Agreements must be filed within 60 days after the first date set for the Meeting of Creditors. If the debt is jointly held, all parties to the debt must sign the reaffirmation agreement. A reaffirmation agreement is a form used by the bankruptcy court.

When is Reaffirmation a Good Idea?

If you want to keep your home, reaffirmation is a good idea. In a Chapter 7 filing, you can file a reaffirmation if you are current on your mortgage payments. Reaffirmation is possible under Chapter 13 even when you are not current. It becomes a part of the reorganization plan.

Likewise, if you have a car that you owe money on, you will need to decide whether it is better for you to reaffirm the debt and keep the car or surrender the car and have the debt discharged. These decisions can be complicated and can affect your bankruptcy. Seek the help of an experienced Tulsa bankruptcy attorney when you have questions.

The Court Must Approve the Reaffirmation

Once you have filed the reaffirmation agreement, the court will have to determine if the agreement is in your best interests. In doing so, the court will look at your income and expenses to determine if the agreement poses a financial hardship for you. If not, the court will approve the agreement.

You and your attorney will need to attend a special hearing on the reaffirmation. The judge may want to know how much the property is worth, whether your financial situation has changed since your initial bankruptcy filing, and how many late payments have been made in the past. Then it will weigh your answers to determine whether the agreement is in your best interests. This is to ensure that you will be able to meet the terms of the reaffirmation agreement without creating another financial crisis for yourself.

If you have questions about reaffirmation, seek help. We are here for you.

Low-cost Consultation With a Tulsa Bankruptcy Attorney

Financial Freedom Bankruptcy Lawyers of Tulsa offer low-cost strategy sessions to help debt-burdened Oklahomans to discover the best approach to their financial crisis.  Call us at (918) 786-9600 to start your low-cost consultation today. You may also contact us using the contact form button on this page to ask a professional Oklahoma bankruptcy attorney your personal questions.

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