Summary
In Chapter 7 bankruptcy, if you are current on your home loan payments, you can generally keep your home by reaffirming the debt. The reaffirmation process involves an agreement with the lender, court approval, and continued payments. Personal guarantees on business loans mean creditors can pursue you personally if the business defaults. Keeping credit cards depends on the issuer, as they may close accounts or reduce limits even if payments are current. Consider consulting a local attorney for personalized advice on managing personal and business financial obligations.Full Conversation
what is the reaffirm process?
Sure! Here’s a quick rundown of the reaffirmation process in Chapter * bankruptcy:
- Agreement: You and your lender agree to continue the loan under the same terms.
- Court Approval: The court must approve the reaffirmation agreement.
- Filing: You file the reaffirmation agreement with the bankruptcy court.
- Continued Payments: Continue making payments as agreed.
Any specific questions about the process?
you mentioned generally. can you clarify?
Certainly! When I mentioned "generally," I meant that under Chapter * bankruptcy, if you continue making your home loan payments and are not behind, you can typically keep your home and the loan stays in place. However, specifics can vary based on individual circumstances. Would you like more details on any particular aspect of this process?
i have a company that might not be able to weather this economic storm and there are personal guarantees on the sba loan and also on some of our equipment. I am an investor in the business but I have a corporate job and am able to handle all of my personal bills. I won't be able to pay off the debt of the company should it go under.
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It sounds like you're dealing with a complex situation involving both personal and business financial obligations. Here are some key points to consider:
- Personal Guarantees: If the business defaults, creditors can pursue you personally for the guaranteed debts.
- Chapter * Bankruptcy: This can discharge most personal debts, but reaffirmation agreements are necessary to keep certain secured debts, like a home loan.
Would you like more detailed information on how personal guarantees are handled in bankruptcy?
can you keep any of your credit cards that are current and no past due?
Case Rating: *
You can keep your current and non-past-due credit cards during a Chapter * bankruptcy, but it depends on the credit card company. They might still close your account or reduce your credit limit.
Do you need more information on how Chapter * bankruptcy could affect your other assets or debts?
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