Reaffirmation Agreements

Protecting Consumers and Businesses Across New Jersey

Many people and businesses in New Jersey have valuable assets that are secured by a loan. Should you or your business fail to make your loan payments, the creditor will have the right to force the sale of your asset to pay off your debt.

Reaffirmation agreements allow you to keep your property by agreeing to make all missed payments, plus interest, over a specific period of time. These agreements can be beneficial for both consumers and businesses because they allow you to avoid foreclosure or repossession while allowing you to keep your valuable property.

Reaffirmation agreements are governed by the New Jersey Consumer Credit Protection Act, which was enacted to protect consumers from unfair lending practices. These laws limit the amount of interest a creditor can charge and require them to make reasonable efforts to inform you of your right to reaffirm your debt.

At Ast & Schmidt, P.C., we have helped countless consumers and businesses throughout New Jersey reaffirm their debts and keep their valuable assets. We can help you, too.

Contact us (973) 363-2260 or contact us online to learn more about reaffirmation agreements and how they can help you.

How to Reaffirm a Debt in New Jersey

If you are a consumer interested in reaffirming a debt, there are several steps you must take.

First, you must send a letter to your creditor within 30 days of missed payment. This letter must include the following information:

• A description of the property you wish to reaffirm, including the amount of the debt and any interest, charges, and fees associated with the property
• A description of the current value of the property
• A statement of your intent to reaffirm the debt, including the amount and frequency of payments you agree to make
• A statement that you were not coerced into signing the reaffirmation agreement and that you have had at least 7 days to consider the agreement

If you are reaffirming a car loan, you must also include the current mileage of the car.

After receiving your letter, your creditor must send you a disclosure statement that explains the rights you have under the Consumer Credit Protection Act.

You must then sign and return the disclosure statement to your creditor, along with a reaffirmation agreement that states the following:

• The total amount of the debt you are reaffirming
• The current interest rate on the debt
• The total amount of payments you agree to make, including interest and principal
• A statement that you can cancel the reaffirmation agreement at any time

The creditor must then provide you with a copy of the disclosure statement and reaffirmation agreement, as well as a copy of your credit report.

After you have signed the reaffirmation agreement and returned it to the creditor, they must inform you of your right to cancel the agreement within 7 days. If you choose to cancel the agreement, the creditor must return your property immediately.

In addition, the creditor must send you a written notice of your right to cancel the agreement at least 21 days before the due date of your first payment.

If you do not cancel the agreement within 7 days, it becomes legally binding.

Contact Our Reaffirmation Agreement Lawyer Today

If you are a consumer or business owner in New Jersey with an outstanding loan, reaffirmation agreements may be able to help you. At Ast & Schmidt, P.C., we have helped countless consumers and businesses throughout New Jersey reaffirm their debts and keep their valuable assets. We can help you, too.

If you are interested in learning more about reaffirmation agreements, we encourage you to contact us online or call (973) 363-2260 for our skilled Morristown reaffirmation agreement lawyer.