Why do I have to Pay This Additional $475 in my Chapter 7 Reaffirmation Agreement

In most Chapter 7 bankruptcy cases the debtor wants to keep her car and its got a lien on it. The way to keep a car that's got a lien is to make a deal with the bank to treat the debt as if you weren't in bankruptcy. That agreement is called a reaffirmation agreement; meaning to reaffirm your obligation to pay the debt. In almost every circumstance the attorney for the bank will charge a fee of between $400 and $500 for representing the creditor. In every case, the Debtor will have to bear that cost. Bankrutpcy attorney Dan Scott explains why. The reason is that when you initially borrowed the money you agreed that if the bank had to hire an attorney to enforce its rights in the collateral (the car) you would pay the legal costs. That's just a cost of getting the money.

No one likes to pay it, but you can't win that argument. This is just the price of keeping the car.


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Dan Scott
Scott Law Group PC
209 Chilhowee School Rd., Ste 15
Seymour, TN 37865
865-246-1050

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