Bankruptcy Information Inidiana Attorneys

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After October-2005 we no longer use the word redemption or do them.  Instead we call it a workout where you do the same by agreeing with the bank to work out making the payments on time to keep property.  Because the bank can sue you later if they repossess the property and the attorney becomes a surety or co-maker if he signs it no reaffirmations will be done after October-2005.  If the bank attempts to repossess then it gets no deficiency making banks work with you to keep property. 

In Bankruptcy, a reaffirmation  is an agreement that you file saying that you will pay a debt although you listed it in your bankruptcy.  If you want to keep a car or home worth more than it's lien, then you may want to reaffirm a secured loan.   By paying on debts on time after you file bankruptcy you will reestablish credit.   Reaffirmations allow you to keep property that is secured although you file bankruptcy.  Reaffirmation is a good option in bankruptcy if your car is worth keeping.   If not, now is the time to exchange it!  However Reaffirmations also allow the bank to repossess the car immediately and to sue you for the balance.   A better option has become to not sign the reaffirmation and to simply make the payments on time.  If the bank is willing to allow you to keep it you can workout the balance with the bank.  You have 3 options with your car or home if you file a bankruptcy: 

1) You can surrender your car or home in bankruptcy and owe nothing, which is a good way to get rid of a lemon.  However, then you need another car or home. 

2) If you bought a good car or a good house for a good price and a good interest rate you can keep it by reaffirming the debt and paying the lender as if you have never bankrupted that creditor or 

3) You can also simply workout repayment with the bank and pay the payments on time.   This avoids the risk of the bank suing you for any deficiency if they repossess the car or home.   

4) You can file a redemption and pay the wholesale price for the auto or item.   

Often the bank offering a reaffirmation may add attorney fees to the loan if you file a reaffirmation.   If you paid too much for your car you should file a redemption or surrender it.   722 Redemption may save you money. (1-888-721-2800)   They may be able to put you into a different car or pay off your current bank for the wholesale (replacement after 10-2005) value of your car if you owe your present bank more than what it is worth.  See how to file a redemption in our manual under redemptions.

The Bankruptcy Manual fully discusses redemptions and reaffirmations.   Download your free copy. The Bankruptcy manual is for informational purposes only. The Bankruptcy Manual comes in rtf format for word or wordperfect, pdf for adobe, or you can download the audios.

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