All right. Congratulations. The meeting with your chapter 7 Trustee went well. You won’t need any further meetings with the trustee or any more hearings. We’re done. So let’s talk about what’s going to happen next
In about one to two weeks from today, you’re going to receive something called a notice of proposed abandonment. Those words kind of freak people out, so let’s talk about what that really means
When you file for bankruptcy, protection a fictional estate is created. This means that the trustee has temporary control of all of your assets and everything that you own. For most people when they get this notice, that’s a good thing. It means the trustee is going to be giving back or abandoning back to you all of the assets of your estate. That’s really all that it means.
Anow about 60 days from today you’re going to receive your order for Discharge. That’s what you’ve been waiting for. This means at this point in time, you’re no longer legally liable for your debts.
If you haven’t yet, you’re going to be focusing on taking your second credit counseling class online. This is also known as the debtor education or financial management class. It’s about two hours long and it’s about budgeting and saving money and managing your finances.
If you’re a Busby & Associates client you’re going to go back to Allen Credit and Debit. Use code 12321. You’re already registered. They will send us your information. We’ll get it filed with the court. If you are Deighan Law or Upright Law client you’re going to go back to Money Sharp and use the code BUSBY. They’ll send me your information.
Now if you have a truck or a car loan; remember when we did your schedules we talked about the agreement that you’re going to sign. It’s called a reaffirmation agreement, and this means you’re going to reassume or reaffirm the loan. It won’t normally change the terms of the loan it just means you’re going to be keeping the debt on your vehicle until it’s paid off.
Now a couple things to remember. This agreement is voluntary; you don’t have to sign it, but the bankruptcy rules do provide if you don’t sign it and even though you’re current, they can come and take your vehicle. So obviously most people do want to sign that agreement. The second thing is that you have to be careful because if you want to keep the debt and if you have a high interest rate like 17, 18 or 19 percent, it’s not going to always be worth it. Also especially if you owe like 40, 50 or 60 000 on a vehicle loan, you really have to think about whether it’s worth that or not. It may impede your fresh start. It may not be worth it. So you have to think about whether it’s worth it for you to sign that agreement.
The good news is you have 60 days to change your mind. So even if you sign the agreement and you realize later “hey, I don’t want this,” you can change your mind and you can void or rescind that agreement. You’ve got 60 days from when it’s filed. So you need to let me know right away. The bottom line is is that once this agreement is filed with the court, and after those 60 days, this agreement survives your bankruptcy.
This means it’s a debt that you’re going to keep; it’s going to survive your bankruptcy.
The bankruptcy is a one-time get out of debt free card basically. You want to make sure that you use it wisely.
All right. Over the next 60 days, if you haven’t taken the second class you need to do so and you’ll sign the agreement on your vehicle. Otherwise you’re going to hang out and just wait until you get your discharge order from the court.
If you have questions, you can give us a call or you go to our website and send us an email