When you "reaffirm" a debt, you and the creditor use an official form to create a brand new debt. Generally, you get to keep the property as long as you keep current on your payments under the new agreement. However, reaffirmation agreement should be a last resort because it requires negotiating with the creditor, leaves you personally liable for a debt, and requires the preparation of a written, legal agreement. Generally, you should only reaffirm a debt only if you cannot be without it, and you have good reason to believe you'll be able to pay off the balance.
Attorneys at Jorgensen, Brownell & Pepin will advise our clients regarding the risks and benefits of signing reaffirmation agreements. |
