Bankruptcy, Reaffirmation, and Using the Time Before Filing Wisely

July 9, 2010 - PRLog -- What do I do if I don’t want my reaffirmation any more? Under the law, you have 60 days to rescind the reaffirmation. When you do this, under the new laws, the creditors can come and take the vehicle or house even if you are current and making your payments. That is why it is important to sign and file reaffirmation agreements on items that you want to keep.

Of course things change, and you may change your mind and find that you can’t afford the house or car payment anymore and need to rescind it. It is possible as long as it is within 60 days of the reaffirmation being filed. You will need to get with your attorney’s office and find out what must be done to make this happen. It is very important that you understand the process and know what can be done to help you when things have changed.

For some, filing bankruptcy is an easy decision. The threat of foreclosure on one’s home, or the “repo man” taking one’s car makes the decision to file much easier, because of the urgency of the situation. For others however, they have a little more time to make the decision, which enables them to be better prepared for filing. This time allows them to accomplish several things that will improve the chances of a successful discharge. The first is changing banks. If one owes his current bank a balance on any credit cards or loans, it would behoove him to switch banks in order to avoid having his account garnished by his current bank. The process of changing banks, particularly if one has direct deposit, may take a couple of weeks, so the extra time is very beneficial in this instance. Another benefit afforded to those planning to file bankruptcy, is that they are able to save money that will be used to make the payments for the house and the trustee payments that will start in thirty days.

Be sure to speak with your attorney regarding the details of your situation, because you may need to wait a couple of months to file. The time leading up to filing can be very beneficial to the client, as seen above, and can act as a catalyst to a smoother, more successful bankruptcy.

For more information visit http://www.bankrupcy-alternative.com/after-short-sale.html or call us directly. Here is another bankruptcy article http://www.prlog.org/10784826-bankruptcy-why-all-the-pape... and here is another http://www.prlog.org/10786776-bankruptcy-asking-questions... for your reading enjoyment.

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