Legal Question in Bankruptcy in Pennsylvania

Re: Secured Loan - Personal Property

Your situation is a very common one. I do not think it is a good idea to file bankruptcy without the benefit of a lawyer for this and other reasons. Basically, you can negotiate to reaffirm for a lesser amount and a lesser interest. However, I think you would be in a better situation if you had a good lawyer to negotiate on your behalf. Offer to reaffirm $1000 at 8% interest and see what they say? ph. (800) 303-0720

Re: Secured Loan - Personal Property, reaffirmation

Based upon your zip code it appears that you are in the Eastern District of PA. I can assure you, the judges in this district strongly disapprove of reaffirmation agreements. The reason is that they know it is highly unlikely that the alleged secured creditor will take any action after the bankruptcy.

Years ago, the only creditor who sought to take action after a case was Sears. They would, on occasion, file actions in state court to recover the secured assets. In each case, my client retained me to defend these actions and in each case, Sears simply withdrew the matter. The reason is that they were simply trying to pressure the client into paying money. Although they knew collection of money was prohibited, they did not really want the collateral.

I have never heard of any other creditor, except Tandy corporation 10 years ago, pursuing a client after the bankruptcy. And Sears has been sued for violations of the bankruptcy laws so that it, too, no longer takes such action.

I would strongly urge you to disregard the request. Indeed, the agreement needs the approval of the court who would probably not give it.

I trust this has been helpful, but feel free to call or e-mail with any questions.