Borrowers who simply have to get out of debt and probably do not allow themselves to pay regularly can`t get anything out of the assertion process. The assertion makes a borrower liable for a debt and is agreed by a formal agreement with the courts and is therefore a legal procedure for the borrower in order to protect himself and his property. The January 2007 confirmation agreement is divided into different parts: John and his mortgage company are organizing a confirmation that will be approved by the courts. It reaffirms the debt it owes to the mortgage of the house, with the possibility of renegotiating the payments with the lender. He and his mortgage company agree during the confirmation process of a lower monthly mortgage payment or a lower interest rate. John can make those lower payments with a few odd jobs he could find. The personal property switch option was removed in the 2005 bankruptcy code changes. Liquidators must now enter into confirmation agreements on secured claims on private property. This means that bankruptcy relief does not apply to confirmed debt and that the filer remains personally responsible for the debt, including any defaults if they later become insolvent. These assertions are intended to protect the secured creditor. Bankruptcy law does not require confirmation of debts guaranteed by real estate, such as your mortgage. Filing for bankruptcy protection must result in debt cancellation and a fresh start.
If you validate your auto loan and later become in debt, you could re-buy debts that you cannot afford. For this reason, it is important to think carefully about whether confirmation is the right thing to do for you. Any confirmation agreement must be concluded before launch. If you are about to confirm a debt and you believe it will not be deposited until the discharge period expires, notify the registry in writing to delay the opening of the discharge until confirmation is submitted. At a confirmation hearing, the judge will ask questions to decide whether the court should approve or deny your confirmation agreement. Typical questions are whether you are up to date on credit payments, whether you have equity in the vehicle, whether you understand the terms of the agreement, why you want to confirm that debt and whether your monthly expenses exceed your income and, if so, how you intend to pay the monthly payments of the confirmation agreement.