In Chapter 7 bankruptcy proceedings, a confirmation agreement is used if the filer wishes to continue to repay one or more of his or her debts. This is usually used for secured debts such as car loans or home loans, where the person wishes to keep the property. If this happens, the bank would probably take your home to pay for its loss. To avoid this, you can submit a confirmation agreement stating that you will continue to pay the loan as if you had never filed a bankruptcy filing. In the event of a Chapter 7 bankruptcy, all your debts are usually destroyed once the case is closed. However, if you buy your home, you can keep it, which means you must formally agree to continue paying the mortgage. Otherwise, these debts will also be eliminated. If you have a home, you can keep it after you file for bankruptcy, especially since it is more difficult to get some kind of credit once you have gone bankrupt. If the court authorizes the agreement, it will be as if you have never filed a balance sheet for these debts and you will still be liable for all of that debt. Borrowers who simply have to get out of debt and probably do not allow themselves to pay regularly can`t get anything out of the assertion process. The assertion makes a borrower liable for a debt and is agreed by a formal agreement with the courts and is therefore a legal procedure for the borrower in order to protect himself and his property. Confirmation prevented Jean from closing his house. However, if the lender is unable to make the mortgage payments under the new conditions, the lender will take possession of its home and initiate foreclosure proceedings.

Debtors voluntarily enter into affirmation agreements. These are legal documents, but a person cannot go to jail for injuring them. If the debtor does not make its planned payments and does not comply with the agreement, the lender takes possession of the guarantees if it wishes. Suppose John has a house and he has $200,000 left to pay his mortgage. Its monthly capital and interest payments are $1,305. John recently lost his job during a recession and has been unemployed for a year because he has not been able to find a job. He has exhausted his savings and is unable to pay his mortgages. Since you will not be able to go bankrupt for several years, you must stay informed, or the lender could take over the house and resell it to recover what you owe.