A debtor may want to pay a debt while those debts would be relieved in the event of bankruptcy. For example, a debtor may keep a vehicle. As a promise to repay these debts, a debtor must enter into a confirmation agreement with the creditor. Statements are optional and are not prescribed by law. It is recommended that the debtor carefully determine whether or not agreed payments can be made before a confirmation agreement is reached. If a debtor is not in debt and chooses not to sign a confirmation agreement, many lenders will recognize the ability to keep and pay the debts by continuing the regular monthly payments. However, this option is not recognized by all lenders, so it is important to know the lender`s position on the debt statement in relation to the retention and compensation option. You filed Chapter 7 of bankruptcy, but you want to keep your home, so you confirmed the mortgage payment. This means that your mortgage debt will not go bankrupt and you will be responsible for the debt. But it also means that you can continue to live in your home. Unfortunately, after the debt reaffirmation, you realize that you cannot afford to continue making your mortgages. And now? I hope you didn`t take too long to discover that you can`t afford to keep your home.
BankruptcyCode gives you the ability to change your mind about confirming secure real estate, but you need to act quickly. 11 U.S.C 524 states that you may revoke the confirmation agreement “at any time prior to dismissal or within 60 days of filing such an agreement in court, depending on what happens later.” All you need to do is file the termination of the court and serve the guaranteed lender. No hearing or appearance is required. The assertions are strictly voluntary. If you wish to (consent) to a particular debt, you must enter into a written agreement with the creditor that legally obliges you to pay a debt in full or in part (destroyed by bankruptcy). The form is Form 240A of the confirmation agreement.