The judgment lien would remain on your property if you go through bankruptcy. If this is the case, the settlement can be discharged through bankruptcy under the right circumstances. Some settlement agreements will contain language that will protect the plaintiff in case the defendant files bankruptcy.
Can I reaffirm debt after discharge?
Reaffirmation agreements are strictly voluntary. A debtor is not required to reaffirm any of his or her debts. If a debtor signs a reaffirmation agreement, the debtor agrees to pay a debt that otherwise might be discharged in his or her bankruptcy case.
Is an agreement during bankruptcy to remain legally obligated on some or all of a debt?
What Is Reaffirmation? Although you filed bankruptcy to cancel your debts, you have the option to sign a written agreement to ”reaffirm” a debt. If you choose to reaffirm, you agree to be legally obli- gated to pay the debt despite bankruptcy.
How can I protect my settlement money?
Deposit your injury settlement check in a segregated account & don’t deposit any other money in the account. You must keep your settlement monies in a segregated, separate bank account. Do not mix up any other money with your settlement monies.
Can you sell your house if you did not reaffirm?
Yes, you can sell the home. The effect of no reaffirmation is that you do not have a personal obligation to pay the mortgage. You still are the titled owner and the mortgage is still a lien on the property so it must be paid in order to sell the property.
Can you pay cash for a house after bankruptcy?
If you’ve gone through a Chapter 7 bankruptcy, you need to wait at least 4 years after a court discharges or dismisses your bankruptcy to qualify for a conventional loan. Government-backed mortgage loans are a bit more lenient. You need to wait 3 years after your bankruptcy’s dismissal or discharge to get a USDA loan.
What happens to a reaffirmation agreement when you file bankruptcy?
Effect of a reaffirmation agreement. When you reaffirm a debt, you agree to be responsible for the debt as if you had not filed bankruptcy. Once you receive your discharge, you’re bound by the agreement unless you rescind it within 60 days of the signing (see below).
Can a car loan be reaffirmed in bankruptcy?
When you reaffirm a car loan in bankruptcy, you sign an agreement with the lender that you will continue to pay for the car as if you had not filed bankruptcy in exchange for keeping it. To reaffirm a car loan, you must be able to show the court that the vehicle is necessary and that the payment is reasonable.
What happens to my car when I file bankruptcy?
Filing for Chapter 7 bankruptcy wipes out the contract that obligates you to pay the car lender, but the lien remains. So once the bankruptcy case is over and the automatic stay lifts (the order that prevents creditors from collecting debt), the lender will be able to repossess the car.
Can a reaffirmation agreement be signed on a car loan?
Under specific circumstances, it may make sense to consider a reaffirmation agreement on your car loan. Massachusetts bankruptcy exemptions allow most filers to protect up to $7,500 of automobile equity. Here are some more quick facts about car loan reaffirmations.
