Oak Park Real Estate & Estate Planning Blog

Are there situations in which you can be required to repay debts you owe even after you receive a bankruptcy discharge ? Can a creditor continue trying to collect on debts you owe after your bankruptcy case has been completed or, worse, force you to reaffirm your debts? There are relatively few types of debts that a debtor will still owe following a bankruptcy discharge, and some of those debts may be reaffirmed debts based on the particular situation of the party filing for bankruptcy. However, U.S. bankruptcy law does not permit debtors to continue taking legal actions in attempts to collect on debts that have been discharged in a bankruptcy case. Our Oak Park bankruptcy lawyers can tell you more about reaffirmed debt and how debt responsibilities can persist after a bankruptcy discharge. Reaffirming Debt is a Process That Will Occur Prior to a Bankruptcy Discharge One of the first things to know is that, if any debt is going to be reaffirmed such that a debtor still owes it fol...

If you are thinking about filing for bankruptcy in Oak Park , especially Chapter 7 bankruptcy , you are most likely planning to have your debts discharged so that you can get a fresh start. Since most debts are going to be dischargeable, getting a fresh start is especially appealing for debtors who are struggling to make ends meet while paying on credit cards and other loans that have high interest rates. There may be some situations, however, in which debtors filing for consumer bankruptcy want to sign a reaffirmation agreement. What is a reaffirmation agreement, and why would a debtor want to agree to one? Reaffirmation agreements can be useful in a number of situations. We will discuss them with you below. What is a Reaffirmation Agreement? A reaffirmation agreement is just what it sounds like - a contract through which a debtor reaffirms a particular debt even though he or she is filing for bankruptcy protection. For many different reasons, a debtor might not w...