Reaffirmation - do I have to?

[nneedofhelp]

What is the name of your state? Texas

We recently met w/ an attoney and have decided to file a Chapter 7 Bankruptcy. In the meeting we were advised to reaffirm two of our debts - Our mortgage and our car payment. We were under the impression that this was not an option and that this was designed to "protect the creditor" in case we were later unable to pay on these 2 debts. But after doing some research on my own - it seems as if we do have an option.

We've never ever been late on either of these 2 payments. So why do we have to "reaffirm"? I thought that in Texas as long as we were current on our home / car these 2 items could be exempt?? The reason I became a little skeptical is that they want to charge us an additional $200 for each debt that is "reaffirmed". Seems a little high for something we aren't required to do??

If we chose not to "reaffirm" these 2 debts - what could be the repercussions down the road?

Thanks for any advice!

 

[anadude]

if texas is in a circuit that allows only reaff, redempt, or surrender then you HAVE TO do one of those or you're putting your case and house/car at risk.

if texas isn't in one of the above circuits, there's a forth option, just keep paying the debt.

 

[nneedofhelp]

Thanks for your reply. I not sure if Texas is in a circuit that allows only reaff, redempt, or surrender?? Does anyone know?

I do know that Texas allows for a homestead exemption. Does this make a difference when it comes to the reaffirmation? Especially since we are current on all payments.

 

[anadude]

the exemption has to do with exempting assets (equity) from the trustee. it has nothing to do with whether or not you have to reaff.