A reaffirmation is an official way to “reobligate” yourself on the loan. This involves the lender sending us a reaffirmation contract to be signed by you.
Filing for Bankruptcy Helped People Get Back on Their Feet After the Great Recession
John from North Carolina shared a story about his uncle, a furniture-store owner, who filed for bankruptcy in order to regain financial stability.
The Great Recession resulted in many people across the United States being laid off from their jobs or losing the businesses that they had dedicated their lives to running. In an article featured on USA Bankruptcy Guide, an online resource for people who are considering filing for bankruptcy, John from North Carolina shared a story about his uncle, a furniture store owner, who filed for bankruptcy in order to regain financial stability.
After realizing that he couldn't compete with larger competitors or afford to keep his employees on the payroll once the recession hit, John's uncle tapped into his savings and retirement accounts in an attempt to keep his furniture store up and running. Ultimately, he filed for bankruptcy and put his business on the auction block when he couldn't get any buyers.
Fortunately, John's uncle was able to keep his home, provided he continued to make his monthly payments, and found a job in marketing that he wound up really enjoying.
“My uncle is an honorable man, and wanted to wrap things up properly,” wrote John. “He hired a lawyer to help him through the legal paperwork and realized that there was no shame in filing bankruptcy. He had managed his business as best as he could and just got caught up in the recession, like everyone else.”
If you've fallen behind on your bills and are struggling to regain financial stability, you should reach out to a Minneapolis, Carver or Anoka County bankruptcy lawyer for consultation. At the Atlas Law Firm, we view bankruptcy as a financial tool that can help people resolve burdensome debt so they can get back on their feet, and our experienced professionals can help you through the process from start to finish.
Chapter 13 is essentially a payment plan that you organize through the court system. Think of it as a consolidation loan with teeth.
There are 2 things you must do after your case is filed: (1) attend the meeting of creditors (aka the 341 hearing); and (2) complete a debtor’s education course via phone within 75 days from the date your case was filed. The 341 hearing is sometimes referred to as the meeting of creditors because your creditors can attend the meeting and ask you questions about the information contained in your petition.