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Can You Help Me Reaffirm on an Unsecured Debt?

By Joseph McDaniel, Esq.

Well, I can. But I won't!

Because in virtually all bankruptcy cases in Arizona, there's no reason in the world to reaffirm on an unsecured debt.

"But I owe the money to Mom, my Doctor, my Priest, my Pusher, my Guru, my Chiro....."

Great!

List them on your bankruptcy schedules, as you must.

Then, after you get your bankruptcy discharge, send them money as your conscience requires.

But it's clearly not in your best interests to reaffirm on an unsecured debt, unless it's to Vinnie the Kneecapper. And he'll walk right through that automatic stay and put you in intensive care anyway, so the same rule applies, right?

Is there ever a reason to reaffirm on an unsecured debt?

Maybe.

For instance, if you intentionally and with a sense of humor ran up $25,000 in credit card debt the day before you filed a bankruptcy, and the credit card company filed a Complaint to Determine Dischargeability of Debt, maybe the only way to keep you sort of intact is going to be to stipulate to the reaffirmation of that unsecured debt.

But you wouldn't do that, would you?

I didn't think so.

Full post as published by Arizona Bankruptcy Attorney Blog on March 30, 2011 (boomark / email).