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Suppose I have a loan with three people.One of them filed for Chapter 7 bankruptcy. I want to enter into a reaffirmation agreement with debtor number 1 for 1/10 of the balance owed.However, I still want to collect the rest of the balance owed from the other two.Is there any problem with collecting the remaining 90% of the balance owed from the other two? Does the reaffirmation agreement with debtor 1 hurt my collection efforts against debtors 2 and 3?
Optional Information: State/Country relating to question: Utah
Hi JACustomer,Debtor 1's Bankruptcy and re-affirmation agreement will not affect your right to collect the remainder of the debt from the other 2 debtors. In fact, in spite of that re-affirmation agreement , you can still collect 100% of the debt from the other 2 debtors if debtor 1 does not pay.cfortunato41002.2652384606
Experience: Bankruptcy professor.