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Individual Debtors Statement of Intention

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    #1

    Individual Debtors Statement of Intention

    Quick question regarding the Individual Debtor's Statement of Intention. ( We Filed in pro per on 1/12/10 skeleton filing). Regarding my home. If you are upside down on your home, would you suggest "reaffirming" the debt? Just asking because the Nolo book strongly suggests you don't because you'll be stuck with it after the bk.

    Stupid question: when is the time to file this form? After the initial filing? (We filed an emergency (skeleton) filing 1/12 and all of our forms are due 1/26. Should I file this statement then? What if I don't know my lenders stance on the reaffirmation. Nolo explains that the "other" box should be used if they will let you keep the property if you continue making payments. It instructs you to check "other" and notate: "Debtor will retain collateral and continue to make regular payment".

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    #2
    Originally posted by BigHairyPig View Post
    Quick question regarding the Individual Debtor's Statement of Intention. ( We Filed in pro per on 1/12/10 skeleton filing). Regarding my home. If you are upside down on your home, would you suggest "reaffirming" the debt? Just asking because the Nolo book strongly suggests you don't because you'll be stuck with it after the bk.
    If you reaffirm and then find you can't make the payments, you will be stuck with the deficiency, as when you 'reaffirm', you are telling the creditor and the BK Court that you do not wish to discharge this debt in the bk and will be responsible for it. So if you have to walk away, and the home eventually sells, you will be responsible for the difference between what it sold for, and what you still owed on the note.

    Originally posted by BigHairyPig View Post
    It instructs you to check "other" and notate: "Debtor will retain collateral and continue to make regular payment".

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    This statement is telling the creditor and the BK court that you will continue to make the payments as normal, but are NOT reaffirming. This is what is called a 'ride-through'. This way, if you have to walk away, you are not responsible for the difference.

    Good luck!
    "To go bravely forward is to invite a miracle."

    "Worry is the darkroom where negatives are formed."

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      #3
      Originally posted by BigHairyPig View Post
      Regarding my home. If you are upside down on your home, would you suggest "reaffirming" the debt?
      No. You need to remember that you're after a fresh start, not the same ball and chain.
      All information contained in this post is for informational and amusement purposes only.
      Bankruptcy is a process, not an event.......

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