What is the main drawback of not signing a confirmation agreement? Since the insistence on the confirmation agreement is often a lost game for creditors, many creditors will simply allow the debtor to continue to make normal payments and retain guarantees. A confirmation agreement is an agreement in which a debtor who claims bankruptcy confirms his debts. What does it mean to affirm the debt? In short, this means that you tell the creditor that you will continue to pay the debts you owe, even after you have gone bankrupt and get relief. The creditor will not be paid by the liquidation of the debtor`s assets, but the debtor will continue to make payments to the creditor. When a debtor signs a confirmation agreement, he or she can still receive relief from any other eligible debt. If the secured debt is personal property (i.e. a vehicle loan), the debtor may be incentivized under the Bankruptcy Act to repeat his guilt. In accordance with Article 521, paragraph 2, point (a), the debtor presents to the court, within thirty days of filing the application or before the first day of the creditors` meeting, indicating whether the debtor intends to confirm or repay the property in question for each secured debt. In this context, the debtor disposes, in accordance with Article 521, paragraph 2, point b), thirty days after the first day of the creditors` meeting, to comply with his stated intention. With respect to personal property (i.e.
a vehicle loan), the debtor can retain ownership of the property only if he enters into a confirmation agreement within 45 days of the first meeting of the creditors. In other words, when a debtor does not confirm a vehicle loan, the creditor has the right to repossess the vehicle. Although the creditor cannot withdraw money from the debtor, he can take the vehicle. For this reason, it may be appropriate to confirm a vehicle loan. In many cases, you don`t have to sign confirmation agreements. If you have questions about confirmation agreements, secured debts or co-signers, an experienced Tampa Bay bankruptcy attorney can still speak to you today. Contact Tampa Law Advocates, P.A. for more information.
A good Minnesota bankruptcy lawyer will ask your creditors whether or not they recover the security without a confirmation agreement. The main drawback of not signing a confirmation agreement is that the lender often denies you access to online account records. Confirmation is not always the best idea and should be included with a firm understanding of what is expected of you and the options of creditors if you do not meet your commitments. Confirmation agreements are generally used for secured debt securities, as these agreements allow the debtor to retain collateral and preserve the creditor`s right to apply the debt in accordance with contractual or amended conditions. This is due to the fact that the only penalty for not signing the confirmation is that the creditor could recover the collateral that provides the credit. Signing a confirmation agreement will bring you back for the debt.