cost of reaffirmation

[eko976]

why is there a big difference between reaffirmation cost between my lawyer and another one ( friend's lawyer )

$300 vs. $75 per reaffirmation

$1500 vs. $1000 for chapter 7 except that he has more assets and surrendering house and I am keeping my condo but a lot less assets
neither case was complicated
is it just stealing money or is really a lot work in the reaffirmation involved?

[ecsclb1724]

I'm doing mine pro se and reaffirmation is a paper that is signed and *possibly* a hearing if the reaffirmation is a seen as a hardship (if you're negative on your schedule J)

[AngelinaCatHub]

I doubt your lawyer at this point. A reaffirmation is paperwork between a creditor and you, and not your lawyer. It can be not recommended by him or not allowed by the Judge but he should only have input and it is part of his wages.

It is a consensus not to reaffirm if you can do that. This way, if things go worse after your discharge, you can still walk away without a deficiency suit. More info needed. 'Hub

[BobMango]

I'm doing mine pro se and reaffirmation is a paper that is signed and *possibly* a hearing if the reaffirmation is a seen as a hardship (if you're negative on your schedule J)

If you are filing pro se, the judge will have to sign off. This necessarily entails a hearing, regardless of whether it appears to be a hardship or not.

[BobMango]

why is there a big difference between reaffirmation cost between my lawyer and another one ( friend's lawyer )

$300 vs. $75 per reaffirmation

$1500 vs. $1000 for chapter 7 except that he has more assets and surrendering house and I am keeping my condo but a lot less assets
neither case was complicated
is it just stealing money or is really a lot work in the reaffirmation involved?

Well like most professionals, such as consultants, CPAs, etc, they all have a different value they place on their services. My attorney charged $1000 for the bankruptcy petition and $125 for the reaffirmation.

[eko976]

my lawyer told me that if I don't want to pay them for reaffirmation that is fine, but I might have to go to hearing and explain why I should keep those loans.
So she got me there, I am not willing to go to hearing
But, my original question was: Is it really worth that much money ($ 300 per loan- I am gonna have 3 loans)?

[sofarsogood2]

Do you have to reaffirm? Why do you want to reaffirm? What type of loans? In many cases, it's better to not reaffirm, athough every situation is different. More info?

[HHM]

It depends. In one sense, reaffirmation is just a piece of paper; but it can actually be quite time consuming to get it done; getting the creditor to sign; going to the hearing., the time to advise you and answer your questions, etc. Also, the lawyer is putting his name on the line, so to speak. When your attorney signs the reaff, he is attesting that the reaff is not a hardship on you; that creates a certain amount of liability. Most attorneys won't do reaff's.

Also, doing a reaff is generally not part of an attorney's fee since most attorneys only charge for the work done before the case is filed. Any work needed after the case is filed (objection hearings, reaffs etc), is usually extra.

[eko976]

1. mortgage for condo $ 617 a month
2. semi truck (i am self-employed truck driver $2200
3 trailer for semi truck $485
i am gonna keep all of that
semi truck is source of income

[sofarsogood2]

Is there equity in condo? Or upside down? Current?

Is there equity in semi? (Could lender resell for a profit) What's the track record of your lender repossessing semis if payments are kept current (are you current)?

How confident are you that the semi business will continue to do well?

When you sign a reaffirmation, you are stuck with that debt for many years as you can't refile for a looong time. For example, if the biz drops off, you are stuck with the mortgage and semi/trailer payments- no opportunity to file/ discharge. Or, you get ill and can't work for 3 months- you have to make payments anyway. If you get behind payments, they can reposses/foreclose after your reaffirmation. If there is a balance after the auction, they will come after you for it.

Most people don't reaffirm because you don't know what the future holds, esp. in the current enviornment. Alot of lenders allow you to keep property as long as you continue to make payments as normal. However, your BK discharge releases you personally from the debt so, if you lost income, became ill etc., you can hand them back the property and say good-bye.

What does your attorney think? I'm no BK guru, perhaps others will chime in. Each situation is different and in certain circumstances, it may be advisable to reaffirm. For most, however, it is not. Just my opinion...

[eko976]

no equity in any property, current on all of them