Such, if you’re trailing to your a car loan or home mortgage, the fresh creditor can inquire the new bankruptcy proceeding judge to own consent in order to repossess your car otherwise foreclose toward domestic. And/or creditor can just hold back until your own bankruptcy proceeding is over immediately after which exercise. Even if a protected creditor can’t sue your if you don’t shell out, one creditor usually can get back the latest equity.
Hence, if you’d like to remain property that is security to possess an excellent shielded debt, attempt to catch-up into the repayments and you will continue to ensure they are during and after bankruptcy, continue people called for insurance policies, and need certainly to reaffirm the loan.
What exactly is Reaffirmation?
As you recorded bankruptcy proceeding so you’re able to cancel the money you owe, you’ve got the choice to sign a written contract to “reaffirm” a debt.
