02 Dic Agreement To Repay Discharged Debts
A debt contract is for people with lower incomes who cannot pay what they owe. But there are consequences. Before you opt for a bankruptcy application or a debt contract, talk to a financial advisor. Financial advisors can also help you understand the impact of bankruptcy and debt contracts. Secured creditors may retain certain rights, even after a discharge has been granted, in order to seize an underlying debt. Depending on the individual circumstances, when a debtor wishes to keep certain items secure (. B for example, an automobile), it may decide to «confirm» the debt. A confirmation is an agreement between the debtor and the creditor that the debtor remains liable and pays all or part of the money owed, whereas the debt would otherwise be discharged in the event of bankruptcy. In return, the creditor promises that he will not take over or take over the automobile or other real estate as long as the debtor continues to pay the debts.
In 1981, approximately 19% of Chapter 7 debtors confirmed one or more debts. (319) Given Congress` express intention to restrict access to assertions, this figure seemed surprisingly high at the time. According to a national survey of insolvent debtors conducted by Visa, 52% of debtors said, until 1996, that they repeated one or more debts. (320) The Commission has been informed of the use of essential evidence of the use of assertions to quash the releases. To the extent that the assertion is applicable, the objective of the «new beginning» of the discharge rules is thwarted. Statements are often obtained by inappropriate methods or by the desire of the deranged debtor to obtain additional credits or to continue to hold assets that insure a dispossessed debt. The Commission recommended that the assertion of a guaranteed liability be applicable, but only at the level of fair value of the property at the time of the petition. The Commission also recommends that a discharge be extinguished of all non-exempt debts, that the assertions not be enforceable and that a judgment on a sending debt be set aside under this right. (306) If you reach a point where you are unable to pay your debts, a Part 9 debt contract can offer welcome relief. If you enter into such an agreement, your debts will be repaid for a certain period of time and the included creditors will stop calling while you are a party to a Part IX debt contract. Once you have your debt contract, you will have a clean slate on which you can rebuild your financial life. The Commission recommends that a derogation from this rule be maintained: in accordance with current practice, mortgages on the debtor`s principal residence could be moved to the contract rate if they were not late (except due to the filing of the insolvency application).