The answer is NO, you can’t keep credit cards in bankruptcy. But there’s good news, too. Keep reading.

When you file your bankruptcy, you’re only required to notify your creditors with whom you carry a balance. However, even credit card companies you have a zero balance with will be notified of the bankruptcy filing. They receive that notice through credit reporting agencies. When they receive notification they will typically freeze and close the account. They do this as a policy, and it has more to do with bankruptcy than it has to do with their relationship with you. So, don’t take it personally.

Your credit card debt is discharged in bankruptcy. This means without a reaffirmation agreement in place, the debt is no longer your responsibility. This is part of the powerful relief of Chapter 7 bankruptcy. Reaffirming or re-entering into credit card debt is typically not a wise choice, and most courts frown upon it. So, when a credit card company realizes someone has filed bankruptcy, the safest thing for them to do is close down the account. This doesn’t mean you won’t be able to do business together again in the future.

Credit Cards After Bankruptcy

It’s reasonable to wonder whether you will be able to obtain credit cards after bankruptcy. Some clients want a credit card for emergency purposes, or to re-build their credit score. others simply want to know when things will return to “normal” in terms of relationships with credit card companies.

There are two types of credit cards: Unsecured and Secured. An Unsecured credit card is the type of credit card most of us are familiar with. The bank loans you money, and you re-pay that money with a monthly payment. If you fail to re-pay, the bank can sue you for the outstanding amount. A Secured credit card works a little differently. You start off by depositing money into an account at the bank (typically a credit union). Then, you’ll be allowed to charge against those funds. Each month, you’ll receive a monthly statement and a minimum payment. This arrangement is beneficial to the bank because your ‘debt’ is secured by your deposit. For someone with a low credit score of just coming out of bankruptcy, this is a great option because it allows you to build your credit score—your monthly payments to the bank will be reported to the credit agencies and your score will build accordingly.

Credit Card Offers After Bankruptcy

After you receive your discharge in bankruptcy, you may be surprised at how many offers for credit cards you receive. Clients are always surprised to hear this. The reasons make sense, though. First, by filing bankruptcy you have eliminated a lot of debt. Individuals without debt are good candidates for credit cards. Second, your debt to income ratio has improved. While your income has not changed, your debt has gone down. Again, you look like a good candidate for extending credit. Lastly, banks know you can’t file bankruptcy again for several years. This means that you’re more likely to re-pay any credit card debt you incur after bankruptcy.

Speak With A Bankruptcy Lawyer Today

If you have questions about bankruptcy, we’re here to help. Most of the answers are surprisingly better than you think. If you’d like to speak with a bankruptcy lawyer call us at 704.749.7747 today. Or, click HERE to request a call from us. We know you have choices. We hope you choose to Recover With Us.

benefits of chapter 7

Can I Keep My Bonus In Bankruptcy?

If you are paid a commission or bonus through your employer, a key question when filing bankruptcy is whether you can keep your bonus when you file a bankruptcy. If certain factors are met, the answer is yes, you can keep your bonus in bankruptcy. Our firm litigated a case in the Western District of North Carolina in 2017 which addressed that exact issue. You can find a link to the story about the case published here on Bloomberg Law.

Is My Bonus Part Of The Bankruptcy Estate?

Whether a bonus is part of the bankruptcy estate, and potentially at risk of being paid over to the Trustee, depends. If the bonus has already been received and is sitting in your account, then yes, it will need to be addressed as an asset of the estate. If the bonus is earned, but not yet received, the answer is the same. However, if a bonus is earned but the payment of the bonus and the amount of the bonus remain in the discretion of the employer, your bonus may not be an asset of the bankruptcy estate.

The Timing Of Your Bonus Is Important

The snapshot for determining the answer to numerous questions regarding your bonus is the day of filing. If, on the day of filing, your employer still retains discretion as to whether to pay the bonus, then you have no vested rights in the bonus. For the purpose of bankruptcy, this is merely an expectation of a bonus. Case law supports the conclusion that a mere expectancy or hope of a bonus is not an asset. Therefore, the bonus would not be part of the bankruptcy estate. While your employer may in fact end up paying the bonus, if at the time of filing you had no legal right to it, then it should not be included in the bankruptcy estate.

What Would Change This Answer?

If prior to the day of filing, your employer communicated to you that you have earned a bonus and the bonus will in fact be paid at a later date, this would most likely dictate the bonus is an asset of the estate. If the bonus was small enough, you could use one of your bankruptcy exemptions to protect the bonus. Depending upon whether you could prove when the bonus was earned, you may also be able to protect some or all of the bonus under the earned income exemption.

How Is A Bonus Different From A Commission?

In this context, the imagined bonus is one which is at the employer’s discretion. A commission is typically calculated and generated upon a mathematical equation, and upon a certain event—conclusion of a sale, signing of a contract, etc. Presumably, the same questions would arise concerning a commission. If the commission was earned at the time of filing your bankruptcy, it would be an asset of the bankruptcy estate, whether you had been paid the commission yet or not.

Speak With A Charlotte Bankruptcy Attorney

If you are considering filing a bankruptcy, speak with a Charlotte bankruptcy attorney today. You can call us at 704.749.7747 or click HERE to request a call. We know you have choices. We hope you choose to Recover With Us.

the other driver is lying about the accident

If you’ve been in a Charlotte car accident with a drunk driver, you should strongly consider hiring a Charlotte personal injury lawyer to assist you. This article addresses some unique concerns to a Charlotte car accident involving a drunk driver. We hope it’s helpful to you.

Drunk Driving Statistics

In 2015, according to the National Highway Traffic Safety Administration, 35,092 people were killed as a result of driving accidents. Drunk driving was involved in 10,265 of those accidents. That is roughly 29% of all traffic fatalities. The desire to limit these unnecessary fatalities allows punitive damages in many drunk driving accidents.

Punitive Damages In Drunk Driving Accidents

If you were injured or if a family member was killed by a drunk driver, you may be entitled to punitive damages. Punitive damages are distinguishable from compensatory damages. Compensatory damages are meant to make the victim whole again. They often include repayment for medical bills, lost wages, pain and suffering, and permanent disability. Punitive damages are meant to punish or deter the at-fault party and others. By allowing a jury to award punitive damages, the court send a message to all future offenders. The hope is that the threat of a large verdict against you will prevent you from driving drunk.

The aggravating factor in a drunk driving accident is willful and wanton conduct. This aggravating factor, codified in North Carolina General Statutes Chapter 1D. Willful and wanton conduct is defined as “the conscious and intentional disregard of and indifference to the rights and safety of others, which the defendant knows or should know is reasonably likely to result in injury, damage, or other harm. Willful or wanton conduct means more than gross negligence.” When a victim is able to establish this requirement they are able to recover punitive damages in a North Carolina drunk driving accident.

Attorney Fees In Drunk Driving Accidents

Like all other personal injury claims our firm handles, our firm is paid on a contingent fee basis. This means that unless we are able to obtain a settlement for you, you do not owe us anything. In a situation of a Charlotte car accident with a drunk driver, that fee structure remains the same.

Speak With A Charlotte Personal Injury Attorney Today

The consultation is free. Call 704.749.7747 to speak with a Charlotte personal injury lawyer in our office today. We consider it part of our job to provide answers even if you don’t choose to hire us. You’re entitled to understand your rights. We know you have choices. We hope you choose to Recover With Us.

If you’re searching for a “Personal injury lawyer near me,” most likely you’ve been in a car accident or had a slip and fall at a grocery store or retail store. Finally, you may need to speak with someone regarding Workers’ Compensation. The Layton Law Firm’s office is in Charlotte, North Carolina and we handle personal injury claims across the state of North Carolina. Quite often, we can come to you, to sign paperwork.

After your accident, establishing a relationship quickly with a personal injury lawyer is important. Your personal injury lawyer will notify the insurance company that you are represented, and help you take next steps to preserve your rights.

Personal Injury Free Consultation

One way to get information quickly is with a personal injury free consultation. This can be done over the telephone. During this call you’ll speak directly with a Charlotte personal injury lawyer. First you’ll be given a chance to tell your story. Second, the lawyer will ask a few questions to help clarify the facts. Finally, the lawyer will try to advise you as to whether you have a personal injury claim worth pursuing.

If you decide with the attorney that you would like to pursue your claim, an in-person meeting can be arranged quickly after the phone consultation. In many cases, we are available to meet you at a location of your choosing to further discuss your case. Getting to know one another in person is important because in many cases you will be working with your personal injury lawyer for a long time.

Personal Injury Lawyer Fee Agreements

If you do move forward with representation by a personal injury lawyer, you’ll find that most personal injury lawyer fee agreements are written in your favor. Generally, you do not owe the personal injury lawyer or law firm anything unless they are able to obtain a settlement or jury verdict for you. If your personal injury lawyer does obtain a settlement for you, the standard fee is one third of the total settlement.

Your personal injury lawyer’s fee agreement should also mention any costs associated with obtaining records and negotiating medical bills on your behalf. Lastly, the agreement should address Medical Payments claims. You should fully review the agreement prior to signing it, and ask questions of the personal injury lawyer about any language in the agreement which is unclear to you.

If you searched for “Personal injury lawyer near me,” we are glad you found this article, and we would love to speak with you. The call is free, and helping individuals understand their options is part of our job.

Speak With A Personal Injury Lawyer Today

Whether clients are searching for a “Personal injury lawyer near me” or simply searching for a personal injury lawyer who can answer some questions, we are here to help.

It’s easy to get started. Simply call 704.749.7747 to speak with a personal injury lawyer today, or click HERE to request a call. You will be contacted directly by a personal injury lawyer, and by the end of the call you should understand your options. We know you have choices. We hope you choose to Recover With Us.

Your Credit Score After Bankruptcy

If you call for a bankruptcy consultation, part of that phone call will be a discussion regarding your credit score after bankruptcy. There is plenty of good news regarding your credit score after bankruptcy. This article will help you distinguish between fact and myth.

Your Credit Score After Bankruptcy Will Not Be Ruined

Generally, your credit score a year after filing a Chapter 7 will recover to what it was just prior to filing the Chapter 7 bankruptcy. While there are exceptions, most clients who choose to file a Chapter 7 do not have a perfect credit score. By eliminating debt in the Chapter 7 filing, your debt to income ration improves and this helps your credit score recover after you’ve filed bankruptcy.

You Will Receive Offers For Credit Cards After Bankruptcy

Clients are surprised to find that they are offered credit cards shortly after filing bankruptcy. Certainly, most clients report that around the one year mark after filing, they receive credit card offers. While the interest rates may be high, this is true of most credit cards. If you pay off the balance each month, you are never charged interest. The reason banks offer you credit cards so soon after filing bankruptcy is that you are a good candidate for credit. You’ve discharged all of your unsecured debt through bankruptcy, and you’re more likely to pay on a new credit card. The creditors also know you can’t file bankruptcy again for a number of years.

If you want to improve your credit score after bankruptcy as quickly as possible, consider a secured credit card. A secured credit card is one where you give the bank or credit union a deposit. For instance, you may give the bank $300.00. In exchange, the credit union gives you a credit card with a limit of $300.00. Each month, if you spend some and pay the balance down to $0 again, the credit union will report this to the credit bureaus. This positive payment history serves to quickly build your credit score after bankruptcy. Quite often, after a history of on time payments, the credit union will extend your credit to a higher limit.

You Can Build Credit While A Bankruptcy Shows On Your Credit Report

A bankruptcy filing will show on your credit report for no more than ten years. This will not prevent you from building your credit score after bankruptcy. Your income to debt ratio will be improved, and if you immediately take advantage of secured credit cards, or make payments on vehicle and mortgage debt, your credit score after bankruptcy will build accordingly.

Speak With A Charlotte Bankruptcy Attorney Today

Making a phone call is the first step. We get excited when we speak with potential clients who are considering filing bankruptcy. Quite often I find myself telling clients that whether they file with our firm or another firm, they NEED to file bankruptcy. I believe this because after hearing their story, I believe they deserve the relief bankruptcy provides.

If you’d like to speak with a Charlotte bankruptcy attorney today, call us at 704.749.7747 or click HERE to request a call. It’s easy and it’s free. We know you have choices. We hope you choose to Recover With Us.

Truck accident attorneys in Charlotte, North Carolina can assist you when you’ve been injured in a car accident involving a tractor trailer, a semi truck, or any commercial truck. This article discusses the primary concerns regarding truck accidents in Charlotte, North Carolina. Below, you’ll find tips on why you should hire a personal injury attorney to help.

Commercial Liability In Truck Accidents

When you’re involved in a truck accident in Charlotte, North Carolina, your Charlotte personal injury attorney will work to establish commercial liability. This connection to the commercial owner of the truck is important because you want to pursue the commercial insurance carrier. You’d rather pursue them than the insurance carrier of the individual driver.

The primary reason for pursuing the commercial insurance carrier is they generally carry more insurance than an individual driver. The commercial policy will most likely have between $500,000 and $1,000,000 of insurance available for your medical bills, pain and suffering, and lost wages associated with the accident. Second, in a personal injury trial, a jury is more likely to hold a commercial entity more responsible than an individual driver. Juries are human beings. In plenty of instances they may feel sorry for an at-fault driver for some reason, and offer the injured party less money. However, if the party paying the bill is a corporation, the jury will not feel the same empathy for the corporate entity. Finally, juries tend to believe that a corporation has an affirmative responsibility to operate their vehicles safely. In some instances, punitive damages can be awarded when the corporation fails to do so. Your Charlotte, North Carolina truck accident attorney can tell you more about these specific situations.

Severe Injuries In Truck Accidents

Where an accident involves a semi truck or a tractor trailer, more often than not, the injuries are more severe than those involving two smaller vehicles. Hiring a truck accident attorney will insure you that you have someone representing you who can maximize the value of your claim. Your attorney does this by thoroughly reviewing the medical records and billing, and arguing the full extent of your injuries on your behalf. With more severe injuries, there are lingering symptoms and pain and suffering long after treatment is completed. You may even settle with a trucking company’s insurance company with a hold-back for future medical treatment, if necessary.

The larger policy limits carried by most commercial truck owners will benefit the injured party and insure there is enough money to fully compensate you for your injuries. Additionally, insurance adjusters who handle claims for their corporate clients who operate trucks on the streets and highways of Charlotte, North Carolina are experienced. They are aware of the significance of the injuries resulting from truck accidents. Your personal injury attorney and the insurance adjuster will most likely be able to agree on the severity of the injuries and work toward a fair settlement for you.

Personal Injury Lawsuits Involving Truck Companies

If your personal injury attorney is unable to negotiate settlement for you, or if you are not interested in accepting the settlement offer from the insurance company, filing a lawsuit is the next step. Your attorney can advise you as to the odds of receiving a jury verdict large enough to warrant filing a lawsuit and the decision will be yours. Generally, juries will view your situation more favorably because you were the victim in an accident involving a commercial vehicle. Juries tend to treat these accidents differently than an accident involving two similar individuals driving privately owned vehicles.

Speak With A Truck Accident Attorney In Charlotte, North Carolina

If you’ve been in an accident involving a commercial vehicle, speak with a Charlotte personal injury attorney today. Whether the vehicle is a trash truck, a delivery truck, or any other large commercially operated vehicle, you deserve to understand your options. You can call us for a free consultation at 704.749.7747 or click HERE to quickly request a phone call. We know you have options. We hope you choose to Recover With Us.

Child Attorney

If you have a minor child injured in North Carolina, you may want to speak to a Child Injury Lawyer in Charlotte, NC. When a child is injured in a pedestrian accident, a slip and fall, or a car accident, you may be able to recover from the at-fault party.

What Makes A Good Child Injury Lawyer?

Generally, a personal injury law firm that handles claims on behalf of adults is competent to handle claims for children or minors. We have found over the years that the ability to connect with the child is a critical element to successfully negotiating personal injury claims involving children. Quite often, the child’s story or version of the facts may change, because their memory is different from the memory of adults. Your personal injury attorney will be able to assist in helping the child clearly remember the facts, without attempting to change or distort them.

Connecting with a minor or a child is a critical part of a healthy attorney-client relationship. While a parent or a Guardian Ad Litem will ultimately represent the child’s best interests, the child’s interaction with the law firm should help the child feel comfortable and protected. Great personal injury attorneys understand that a different set of communication skills is necessary to accomplish these tasks when a child is involved.

Will We Have To File A Lawsuit For A Minor?

Some claims settle without the need for a lawsuit; however, if the claim is to be settled for more than $5,000.00, the insurance company will typically require court approval. The reason for doing so arises out of a fear that when the child reaches the age of majority, they could argue that the insurance company treated them unfairly. By requiring court approval for the settlement, the insurance company is protected. Additionally, parents are protected in this environment as well. If you reach a settlement agreement prior to filing the lawsuit, the lawsuit is typically referred to as a “Friendly Lawsuit” and will not involve depositions, or having the child take the witness stand. The parties are simply asking for court approval for the settlement amount.

Should We Speak With A Charlotte Personal Injury Attorney?

If your minor child has been injured and you believe another party may be at fault, you should speak with a child injury lawyer in Charlotte, NC. The call is known as a consultation, and it is free. Our goal is to provide you with advice and to help you understand your options. You can call us at 704.749.7747 or click HERE to request a phone call. We know you have options. We hope you choose to Recover With Us.

Personal Injury Claims For Children

Children under the age of 18 are protected in North Carolina and offered the same compensation for personal injuries as adults. A child under the age of 18 is typically referred to as a Minor, but the two terms are interchangeable for this article about personal injury claims involving children.

Personal Injury Claims Involving Children Or Minors

Children are often involved in the same type of accidents as adults. While children may not be driving an automobile, they are often injured as passengers. Pedestrian injuries involving minors are also very common. Our firm has handled several pedestrian claims for minors over the years. Lastly, a child can sustain an injury from a slip and fall accident in a grocery store or retail store much the same way as an adult can, and with similar injuries.

What Is A Fair Settlement For A Child?

A child’s settlement will be based upon primarily the same factors as a settlement for an adult. In personal injury claims involving children, the cost of medical treatment will be considered. Pain and suffering will also be taken into account. To the extent there is a permanent disability resulting from the injury, a child will suffer that disability for a greater number of years than an adult, and that will also be considered.

Does The Settlement Need Court Approval?

Many settlements for personal injury claims involving children or minors can be handled without court approval. A parent or guardian must consent to the settlement amount, and the funds will be delivered to the parent or guardian. Whether a settlement for a minor needs court approval is often determined by the insurance company authorizing the settlement. The primary reason an insurance company would demand court approval for a minor settlement is a fear of the minor later coming back to claim the settlement was no a fair settlement.

Does A Lawsuit Need To Be Filed?

If court approval is required by the insurance company then yes, a lawsuit will need to be filed and a Guardian Ad Litem appointed. This is usually a parent, but is essentially someone to represent the child’s best interests. While a lawsuit does need to be filed, this is often referred to as a “Friendly” lawsuit. It is one in which the parties have already agreed to the settlement amount, and they are simply seeking court approval for it. The court will be sure that the settlement is fair, all things considered. The court will probably also hold the funds in trust for the child or a separate trust will be set up for the child, to be delivered to the child upon reaching adulthood.

Speak With An Attorney Today

If you are the parent or guardian of a minor child and would like to speak with a Charlotte personal injury attorney about their injury, we’re here to help. Consultations are done by phone or in person, and are absolutely free. Call 704.749.7747 or click HERE to request a call from us. We hope you choose to Recover With Us.

Personal Injury Calculator

We have found that our personal injury clients simply want to be treated fairly by insurance companies. Deciding what is fair treatment can be a difficult proposition. The definition of a fair settlement changes depending upon the facts surrounding the accident. Lastly, because each case is unique, hiring a personal injury lawyer to assist you can make all the difference. While settling your claim without a personal injury lawyer is possible, we have found clients receive better settlements with the help of an attorney.

How Is My Settlement Calculated?

A NC personal injury calculator can be quite misleading. Most personal injury settlements are based upon a combination of compensation for Medical Bills, Lost Wages, Pain and Suffering, and Special Damages. Because the facts surrounding each accident are different, these calculations may be adjusted in numerous ways. For instance, the same injuries sustained in a rear-end collision may receive a higher settlement than those sustained in a slip and fall accident. The reason for this is the insurance company defending the case may believe you contributed to the slip and fall injury, and will discount the settlement accordingly. This is the concept of Contributory Negligence, and it can result in no recovery at all.

Will I Receive A Breakdown Of My Settlement Calculations?

Generally, no. Your personal injury lawyer will submit a detailed demand package which sets out a theory of liability, medical treatment, and damages. That demand package will include specific amounts for medical bills, lost wages, and any additional damages. However, the insurance company’s offer of settlement will typically be a lump sum amount. To help you understand the settlement offer, we will show you how your personal injury settlement proceeds will be applied to your case, and show you a final amount which you will receive.

While some clients desire to know specifically how much the insurance company is allotting for medical bills, lost wages and pain and suffering, the easiest way to think about your settlement is in terms of how much you will receive after payments to all parties have been made. You should know this amount prior to accepting your personal injury settlement. This is generally presented to you by your personal injury lawyer in the form of a Settlement Statement.

Is There An Online NC Personal Injury Calculator?

If you find an online personal injury calculator, you should be weary of it. The value of your settlement will depend upon so many very specific factors, and a calculator simply can’t account for all of them. If each claim was exactly alike, the need for representation by a NC personal injury lawyer would not be as important. Because each claim is unique, the expertise your personal injury lawyer has will increase the value of your claim as the lawyer argues the value of your claim with the insurance adjuster.

What Factors Will My Attorney Argue About With The Adjuster?

First, your attorney must put forth a theory of liability to establish the other party was at fault. If you were rear-ended, this is admittedly easier in North Carolina. In a multiple vehicle “pile up”, this task becomes much more difficult. The same is true of a slip and fall in a grocery store or retail store. The insurance adjuster will argue, for instance, that you contributed to the vehicle accident, or that you contributed to the slip and fall in some manner. They will use this theory to de-value your claim, no matter what the injuries were.

Successful arguments related to the following items can make all the difference:

  • Lost Wages – Your attorney will establish you actually lost wages due to the accident. We negotiate lost wages where adjusters believe the injured party should have returned to work more quickly.
  • Medical Bills—Quite often the insurance adjuster will argue the injured party received ‘excessive treatment’ and will not want to pay for all of it. Your personal injury lawyer will examine the treatment notes and defend the treatment you received as necessary and ordinary for the injuries.
  • Pain and Suffering—Your personal injury attorney will tell the story surrounding your injury. This humanizes you in the eyes of the insurance adjuster and when done convincingly, increases the value of your claim.
  • Special Damages—If the injury you sustained led to missing out on important life events (A wedding, or a graduation, for example), the attorney will put the adjuster on notice of those Special Damages and argue for compensation related to them.
  • Threat of Lawsuit—Perhaps one of the strongest reasons for employing a personal injury lawyer is that the insurance company sees the case differently when negotiating with a lawyer. They know if a resolution can’t be reached, they face having to defend a lawsuit which could cost them considerably.

What Are My Next Steps

If you’ve been injured in an accident of any type, you should speak with a NC personal injury lawyer. Our firm—and most firms—offer free consultations by phone or in person. There is no commitment to hire us, and the goal is to help you understand your options. You can call us at 704.749.7747 or click HERE to request a phone call. We know you have choices. We hope you choose to Recover With Us.

Reaffirmation Agreement

When you file your Chapter 7 Bankruptcy, you will have to declare on your Statement of Intention form, whether you plan to reaffirm certain debts. When you sign a Reaffirmation Agreement, you are simply recommitting to the debt associated with property. This property can be your vehicle or your home. Whether you should sign a Reaffirmation Agreement depends on the circumstances and the type of debt.

What Effect Does Bankruptcy Have On My Mortgage?

If you file Chapter 7 and receive a Discharge, you will effectively no longer be obligated to pay the debts which were discharged. This presents a dilemma when the debt is associated with property such as a home or vehicle. In those instances, the lender has the right to force you to either a) return the property associated with the debt, or b) sign a Reaffirmation agreement.

Because a mortgage debt is such a large debt, the Bankruptcy Courts have held that you actually have a third choice with regard to your home mortgage. That choice is that you can “Retain and Pay”. This means that you do not have to reaffirm your mortgage debt, and so long as you continue to make your mortgage payments, you can stay in the home.

What Are The Reasons To Not Sign A Reaffirmation Agreement?

First, if you or your spouse lose your job after bankruptcy, or if the economy and housing values decline, you’ll be protected. If you do not reaffirm, you can simply walk away from the home and you owe nothing to the lender. You simply turn over the keys. If you reaffirmed, then you would be responsible for the loan balance on the mortgage. If the lender sold the home in foreclosure and did not receive enough to pay off the mortgage, they could pursue you for the remainder. In the alternative, if the lender forgave the remaining debt, there is a chance you would receive a 1099 for forgiveness of debt. This would trigger a tax obligation for you.

Second, the terms of your mortgage will not change. The interest rate and underlying agreement with the bank will continue. Each time you make a payment, your balance will decrease. In other words, you will receive credit for all payments made.

What Are The Reasons To Sign A Reaffirmation Agreement?

Truthfully, the only real reason to reaffirm your mortgage debt is related to credit reporting. Most lenders will not report your mortgage payments to the credit bureaus unless you reaffirm the debt. One of the fastest ways to rebuild your credit is through making mortgage payments. There are alternatives, however. If you obtain a retail credit card or secured credit card, or if you’re making payments on vehicle loans, you will receive credit for those payments when the creditors report to the credit bureaus.

Speak With  A Charlotte Bankruptcy Attorney Today

If you’re considering filing Chapter 7 Bankruptcy, call us at 704.749.7747 to speak with a Charlotte Bankruptcy attorney today. Or you can click HERE to request a consultation. Most consultations are done by phone and they are free—you deserve to understand your options. We hope you’ll choose to Recover With Us.