Legal Question in Bankruptcy in California

Should I Reaffirm Certain Debt?

I am 77 and on disabilty presently. I need to file Chapter 7, as debt is overwhelming and I do not know if I will be able to return to work. Am using an online service to complete paperwork and email to me for filing. Reaffirmation forms are included for me to complete. Is it wise to reaffirm certain debt (one is credit card used for washer/dryer--want to keep collateral; one is a small balance that could be paid in two or three installments), or simply to make an agreement with the creditor(s)? If answer is make agreement with creditor, do I do this before or after filing Chapter 7. 2) Is it correct that when listing monthly expenses, I do not include those to be discharged in BK? Many thanks for your advice.


Asked on 6/28/05, 1:07 pm

2 Answers from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: Should I Reaffirm Certain Debt?

I usually do not recommend that people reaffirm. If you reaffirm, you are essentially taking the debt out of bankruptcy and can be sued for the debt if you don't pay later. Also, if you have no lawyer, the bankruptcy judge will have to approve the reaffirmation agreement. They often will not do so if you don't appear to have the means to pay. Also, you have to list all of your assets and debts in bankruptcy, as well as accurately budget what you anticipate will be your monthly expenses, amortized over 12 months. Good luck to you!

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Answered on 6/28/05, 1:15 pm
William Schuchman Law Offices of Schuchman & Funada

Re: Should I Reaffirm Certain Debt?

First you cannot reaffirm a debt until after your case is filed. Before considering reaffirming the credit card for the washer and dryer you should determine if the debt is secured. If the small balance card is unsecured you must find out if you will be able to use the card in the future if you reaffirm. I suggest you retain a lawyer you can confer with and forget the online service. There is no such thing as a simple bankruptcy.

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Answered on 6/30/05, 10:45 pm


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