Refinancing With GMAC During A Bankruptcy

Those who have financed a vehicle or home through GMAC and then consider filing a bankruptcy petition, they may like to refinance the loan in an effort to achieve a more affordable repayment plan (with lower monthly payments). If you are also considering refinancing with GMAC during a bankruptcy, the laws under the US bankruptcy code require you to follow a set procedure. In general, it is like reaffirming a debt and you will have to follow the reaffirmation process. Following is a brief guide on how to go about it.

Discuss The Proposal With GMAC

The first thing you have to do is to contact GMAC and discuss the proposal with them. You must tell them your reasons why you want to go for that option and how you think you qualify for it. Tell that that you are willing to jump into a reaffirmation agreement. You can check your monthly statements that GMAC sends to you to find out the phone number and email address of the customer service department. As per the US bankruptcy laws, there is a provision for a reaffirmation agreement, where a debtor may be allowed to keep a specific property if he/she agrees to continue making the monthly payments toward the outstanding debt that they still owe on that property, such as a home with a mortgage loan or an automobile with a car loan. This agreement can open the door for you for the refinancing with GMAC during a bankruptcy. Once a reaffirmation agreement is approved by the court, the parties can mutually decide to modify the repayment plan as part of a refinancing program.

Advise The Trustee

After discussing your refinancing options with GMAC, you also need to advise the bankruptcy court trustee who is handling your case that you are considering going for a reaffirmation agreement with the GMAC and that you have already talked to them about it.

Get The Form

There is a specific form that you need to fill out and submit regarding this issue. You need to file a motion. You can get the agreement form either from the trustee appointed by the bankruptcy court or from the GMAC.

Prepare A Proposal

Prepare a proposal for refinancing with GMAC during a bankruptcy. The proposal (or the agreement) must contain the basic details, such as how the payments and other terms of the loans will be changed once the court approves the reaffirmation agreement, the total amount of money still outstanding on the loan, and what the current terms and conditions are (how much you are paying now every month).

Execute The Agreement

Once you prepare the agreement, execute it. Once you file the motion, the court trustee calls for a creditors meeting where it is decided whether the agreement should be signed or not. The meeting usually is held somewhere around thirty to sixty days after the petition filing.

Last, but not the least, do not forget to keep a copy of the agreement you have filed to yourself. If you are seriously considering refinancing with GMAC during a bankruptcy, you are strongly recommended to make sure that you are financial strong enough to make the monthly payments as part of the new refinanced repayment plan. Besides that, since the entire process can be very complicated to handle on your own, it may also be a wise idea to consult an expert bankruptcy attorney. Hire one and let them handle things on your behalf.

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