
B240AB ALT Form 240AB ALT Reaffirmation Agreement 0410


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People also ask
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What is a reaffirmation agreement on a mortgage?
By entering into a reaffirmation agreement, a borrower often maintains possession of an asset held as collateral such as a home or a car, so long as they can fully repay the debt owed on that particular loan.
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Why would someone choose to reaffirm a debt?
A debtor may enter into a reaffirmation agreement in order to take a debt owed on an automobile (for example) and agree to remove that debt from being dischargeable. This is the case for many debtors who want to desire to keep their vehicle even though money is still owed on the car loan.
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Why do I need reaffirmation?
One of the primary reasons for reaffirming a debt is the ability to keep the property tied to a secured loan. For example, if you have a car loan, reaffirming the debt allows you to continue making payments and avoid repossession.
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What does reaffirmation of debt mean on a credit report?
Reaffirmation is an agreement by a debtor, to a lender, to repay some or all of their debt. Debtors make reaffirmation agreements purely voluntarily. When a borrower reaffirms a debt, this is noted by credit reporting agencies, which then register that the person will make regular, on-time payments.
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What is reaffirmation of debt on credit report?
Reaffirming a debt informs the lender that you intend to continue to pay the loan. Generally, the lender will continue to report the loan and all payments made on that loan to the credit reporting agencies, which may help improve your credit score after bankruptcy, provided timely payments are made on the loan.
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Do I have to reaffirm my mortgage in chapter 7?
SHOULD YOU REAFFIRM YOUR MORTGAGE IN A CHAPTER 7 BANKRUPTCY? As a general rule in California, there is no need to reaffirm a mortgage. Reaffirmations of mortgages are not even mentioned in the Bankruptcy Code.
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What is the purpose of a reaffirmation agreement?
A reaffirmation agreement is a legally binding contract between a debtor and a creditor during a Chapter 7 bankruptcy proceeding. It allows the debtor to voluntarily commit to repaying a specific debt that would otherwise be discharged through the bankruptcy process.
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What is an example of reaffirmation?
For example, if a debtor reaffirms a car loan for $15,000 and the car securing the loan is worth $8,000, then, if the debt or defaults, the creditor may repossess the car and the debtor may still be liable to the creditor for $7,000 (the difference between the amount of the l oan and the value of the car at the time it ...
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