Get Free Chapter 7 Bankruptcy Information To Know About Re-Affirming Debts

Dec. 15, 2010 - PRLog -- To name a few IRS tax dues, student loans or alimony to ex-spouse could be some. Such debts survive and therefore you might want to re-affirm these dues. Here is some vital information pertaining to what a debtor should expect when re-affirming debts.

Most of the debtors file for chapter 7 bankruptcy to get rid of their excessive debts that have become hard to manage. But all debts do not qualify for a discharge under chapter 7. To name a few IRS tax dues, student loans or alimony to ex-spouse could be some. Such debts survive and therefore you might want to re-affirm these dues. Here is some vital information pertaining to what a debtor should expect when re-affirming debts.

  1. Why should you re-affirm debts?

     To file for personal bankruptcy, you need to have a thorough understanding of chapter 7 or chapter 13 bankruptcy rules. This is because if the type of debt is attached to some property asset which includes car, home or even business then you may want to keep them. That could be crucial in rebuilding credit ratings post bankruptcy discharge. Additionally, if the debt is service related such as engaging the services of an orthodontist or family doctor, you could also keep it.

  2. Why you should not re-affirm debts

     The term reaffirmation implies personal liabilities for the particular debt might qualify for discharge under chapter 7 bankruptcy requirements. Remember, if you do not stay current with monthly payments, creditors could have an upper hand during the proceeding of your case. In such cases, it is always desirable to file for chapter 13 bankruptcy. In any case, re-affirmation of specific debts like credit cards does not imply that credit lines are going to be open for you after discharge.

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  3. Re-affirming debts

     There could be reasons why you need to take advantage of free bankruptcy information available online. When you intend to reaffirm debts, you need to execute the process before you actually become eligible for a discharge. To that effect, it could be important for you to obtain a reaffirmation agreement in written form and get it registered online with the bankruptcy court. But if you have not employed an attorney or if the bankruptcy court does not grant an approval for reaffirmation, you could be required to face a hearing.

  4. What to wear for the court hearing

     You need to be properly dressed when you are appearing for a hearing in the court. Try to avoid wearing shorts. Polo shirts or khakis could be a good proposition. Women need to specifically take care of their dressing.

  5. When at the hearing

     The bankruptcy judge might ask few questions on if you really want to keep the debts and whether they are in your best interest. And during the entire procedure, your creditors could also be in contact over telephone.

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