How To Declare A Reaffirmation Of Assets In A Chapter 7 Bankruptcy Filing?

Article By Patrick Mansfield | Best Rated Law Firms | 02/23/2023

Article Summary

  • How To Declare A Reaffirmation Of Assets In A Chapter 7 Bankruptcy Filing?

    1. Review Chapter 7 of the Bankruptcy Code.


    2. Contact an Attorney Who Specializes in Bankruptcy Law.


    3. Obtain a Copy of Form 412 and a List of Exempt Assets From Your Attorney or the Court Clerk.


    4. Collect Documentation Pertaining to Your Assets from Your Financial Institution and Other Sources, Such as Account Statements, Loan Documents, etcetera.


    5. Gather All Relevant Information Concerning Amendments Made to Any Voluntary Payment Plans on Any of the Assets Being Reaffirmed in the Chapter 7 Bankruptcy Filing


    6. Submit Form 412 to the Court Clerk Along with Evidence of Asset Ownership


    7. Sign and File a Petition With the Court Affirming That You Have Read and Understand The Terms and Conditions Included in Form 412


    8. Attend a Creditor’s Meeting With Your Attorney

  • Please Read A Brief Disclaimer

    Best Rated Law Firms is not a lawyer or a law firm and does not engage in the practice of law or provide legal advice or legal representation. All information, services, and comments provided on the site are for informational and self-help purposes only and are not intended to be a substitute for professional legal advice. Before deciding to engage on a Law Firm listed on Best Rated Law Firms we encourage visitors to do their own research. Please visit our Disclaimer page for more information.

If you are considering filing bankruptcy, you may be wondering what reaffirmation of assets is and how it works. Reaffirmation of assets allows individuals who were not able to keep up on payments for certain possessions during their bankruptcy case to still keep certain assets. It can make it easier to get back on your feet financially after a chapter 7 filing. In this article, we will cover what declaring a reaffirmation of assets in a Chapter 7 bankruptcy case entails and how to do it properly.


What Is Reaffirming Assets During Bankruptcy?


When someone files for Chapter 7 bankruptcy, the court must decide if their assets should be liquidated or sold to pay off creditors. But with reaffirmation of assets, an individual is able to keep the items secured by the lender with whom they have entered into a contract despite filing for bankruptcy. By reaffirming these debts, the contract between debtor and lender is reinstated and all obligations remain in place just as before – though the debt is no longer dischargeable after the reaffirmed loan has been made again.


How To Declare A Reaffirmation Of Assets In A Chapter 7 Bankruptcy Filing?


In order to declare a reaffirmation of assets in a Chapter 7 Bankruptcy filing, there are some steps that must be taken:

1. Determine which secured items you would like to keep: When deciding whether or not you want to keep certain possessions such as furniture or vehicles through asset reaffirmations, review your budget carefully consider your need and means first before committing because these contracts generally aren’t dischargeable so you will still owe money even after completing bankruptcy filing formalities completely.

2. Consider loan modification options: Before signing documents related to asset reaffirmations, try and negotiate with lenders for better interest rates or payment plans - since those could give better financial options than keeping them under current arrangements set up with lenders that allow for complete discharge after completion of full repayment of all discharged debt amount plus any applicable interest charges et al too!

3. Contact creditor/lender: After determining which items you want to hold on to via asset re-affirmations contact creditor/lender and inform them about your intentions by providing relevant proof regarding ownership, value details etc - along with completed documentation package (which will typically include copies of signed contracts or agreements).

4. Complete court paperwork: Submit necessary forms given by court including Statement & Discharge form besides Application & Domicile Certificate confirming claims made previously while declaring Reaffirmations, so then all legal paperwork required at latter stages (for making transactions active again) can take place swiftly without any delays in the post-court approval (as per their jurisdiction’s laws).


Share by: