Legal Question in Bankruptcy in Maryland

Can I ask lien holder to accept lump sum payment

Is it feasible to ask a lien holder to accept a reduced amount if you can pay them in a lump sum? I am discharged in a chap 7, no asset bk and just cannot reaffirm the loan for original amt. but need to keep the property since I use it in making my living. Do I have to work this through the bk attorney or deal direct with them.

Asked on 4/25/08, 5:49 pm

1 Answer from Attorneys

Alton Drew Alton Drew, LLC

Re: Can I ask lien holder to accept lump sum payment

The creditor has the option of accepting a lump sum but does not have to. Since your have already received a discharge and the case is apparently over, this is something that you could do on your own. If you already have an attorney, it would be best to have the attorney negotiate the reaffirmation agreement. This should have been done during the bankruptcy proceeding. Generally where a debtor seeks to enter a reaffirmation agreement with the creditor and the debtor has an attorney, the agreement does not need to be reviewed or approved by the court.

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Answered on 4/25/08, 7:16 pm

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