How to Refinance With GMAC During a Bankruptcy
If you have financed a home or automobile through GMAC and are filing for bankruptcy, you may want to refinance your loan in order to make the montly payment more affordable. There is a specific procedure available to you under the provisions of the U.S. Bankruptcy Code through which you are able to refinance with GMAC during a bankruptcy case. The potential to refinance is available through the reaffirmation process.
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Instructions
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Contact GMAC--find the customer service telephone number in your monthly statement--and say that you want to enter into a reaffirmation agreement. A reaffirmation agreement allows a debtor to maintain a property that secures a debt--a car with an outstanding loan or a home with a mortgage, for example. A reaffirmation agreement provides a refinancing mechanism in that the parties are able to agree to a new set of terms for the loan. The monthly payments and the term can be adjusted.
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Advise the bankruptcy court trustee that you plan on entering into a reaffirmation agreement with GMAC.
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Obtain a reaffirmation agreement form either from GMAC or from the bankruptcy court trustee.
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Prepare a reaffirmation agreement that contains the specific terms you agreed to with GMAC. These provisions include the total amount remaining on the loan and the amount each monthly payment will be once the reaffirmation agreement goes into effect.
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Execute the completed reaffirmation agreement. The document frequently is signed at the creditor's meeting, a session held between about 30 to 60 days after the filing of a bankruptcy petition.
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Keep a copy of the reaffirmation agreement for your records.
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Tips & Warnings
A bankruptcy is a complicated legal procedure. Therefore, your rights and interests are best protected if you engage the services of an experienced bankruptcy lawyer. You can obtain the names of bankruptcy attorneys through both the state and local bar associations.
Before you enter into a reaffirmation agreement make certain that you have the financial resources to make monthly payments under the terms of that contract when the bankruptcy case concludes.
