What is creditor reaffirmation?

Creditor reaffirmation is a legal tool that is available to someone who is filing for bankruptcy in Kansas. It is a way for the debtor to keep certain secured debts such as a car loan or a mortgage when they file for bankruptcy. The debtor and the creditor must agree to the reaffirmation, and the creditor must file an official document called a “Reaffirmation Agreement”. The Agreement makes the creditor’s claim to the debt a “secured debt,” meaning that if the debtor does not make payments, then the creditor can repossess the item. The debtor is also legally obligated to keep making payments on the debt after the bankruptcy is over. This is why reaffirmation is not recommended for debts that cannot be paid in full in a short period of time. In some cases, the court may require the debtor to attend a special hearing to explain why reaffirmation is necessary. Reaffirmation is sometimes used when the debtor needs to keep their home or car or other items of value in order to be able to continue working and have a place to live. In some cases, the debtor is also able to renegotiate the terms of the debt, such as the interest rate, so that they can better afford the payments. Ultimately, reaffirmation is a legal tool that debtors in Kansas can use to keep certain secured debts when they file for bankruptcy. It is important to understand the risks and the legal obligations that come with reaffirmation so that the debtor can make the best decision for their financial future.

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What is creditor reaffirmation?

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