If you`re filing for bankruptcy in Minnesota, you may need to consider signing a reaffirmation agreement that allows you to keep certain assets like your car or home. In this article, we`ll go over what a Minnesota reaffirmation agreement form is, what it does, and how to complete it properly.
What is a Minnesota Reaffirmation Agreement Form?
A reaffirmation agreement is a legal document that allows you to keep your secured debts, such as a car loan or mortgage, even if you file for bankruptcy. This means that even if you discharge your unsecured debts, you`ll still be responsible for paying back your secured debts. A Minnesota reaffirmation agreement form is specifically used in the state of Minnesota to outline the terms of this agreement.
Why Sign a Reaffirmation Agreement Form in Minnesota?
When you file for bankruptcy, your secured creditors have the right to repossess or foreclose on your property if you stop making payments. However, if you sign a reaffirmation agreement, you can keep your assets and continue making payments on them just like before you filed for bankruptcy. Additionally, if you make all your payments on time, this can have a positive effect on your credit score.
How to Complete a Minnesota Reaffirmation Agreement Form
To fill out a Minnesota reaffirmation agreement form, you`ll first need to obtain the necessary form from your bankruptcy court or attorney. The form will ask for information about your creditor, the amount owed, and the terms of your agreement. You`ll also need to state your intent to reaffirm the debt and sign the form in front of a notary public.
It`s important to note that if the court finds that your reaffirmation agreement is not in your best interest, it can reject the agreement. You must also be able to afford the payments on the reaffirmed debt without causing undue hardship.
In conclusion, signing a Minnesota reaffirmation agreement form can help you keep your secured assets and maintain your credit score. However, it`s important to carefully review the terms of the agreement and make sure you can afford the payments before signing. If you`re unsure about the process, it`s always best to consult with a bankruptcy attorney who can guide you through the process.
