Can you keep your property if you file for bankruptcy?
Can You Keep Your Property If You Declare Bankruptcy?
In bankruptcy, secured loans can be kept
You may be wondering whether you are allowed to keep your home, car loan, or any other secured debt when bankruptcy is filed. Although the majority of the time it is true, there are certain exceptions. It is essential to talk with an attorney regarding your specific situation and consequences of filing.
The most important thing to remember regarding secured loans is that it is an asset that has secured by a lien. If you do not make payments, the creditor is able to repossess the collateral. However, they cannot claim bankruptcy against you. If you're paying the debt, you will be able to keep your home, but you will not be allowed to use it to pay the secured debt. If you file the case of a Chapter 13 bankruptcy, you have to renew your debt if you wish to keep your property.
If you're behind in your car or mortgage payment, you'll have to reinstate the debt in your bankruptcy. This will enable you to resolve your financial problems and get back on track with your obligations. It allows the creditor to access your home and could lead to the loss of the value of your property.
Secured creditors are created by an agreement to secure the property, such as a trust deed, a mortgage or a judgment lien. If you don't pay your debts they may acquire possession of the property and collect attorney's fees and interest. Once the debt is repossessed and you are required to reaffirm your payment or the debt will not be discharged.
You could save hundreds of dollars by keeping your collateral. However, you have to keep the insurance you paid to secure your purchase, and keep making your payments. You can either negotiate an agreement with a new vendor or transfer your collateral. Negotiations are feasible and could result in your creditor reducing or extending the time you make payments, or offering additional conditions.
Another method to avoid foreclosure is to sell your home. If you are behind on your mortgage, a few states permit creditors to take equity in your property. If you are in an emergency and need the money, selling your property can help you repay your debt.
Reaffirming debts in Chapter 7 bankruptcy is another option. While the majority of debts are discharged through bankruptcy, liens on secured debts will not. The liens remain on your credit report and affect your credit score. Therefore, you should be sure to check your credit score after declaring bankruptcy.
There are some debts that are able to be paid off but remain on your credit report. You must also comply with a time limit in order to get your debts removed from credit reports. Oftentimes people think they know the rules and regulations, only to they discover that what they thought to be true was nothing but. Rules change and sometimes are not well explained. Be sure to research the rules before declaring bankruptcy. Although no one would like to go through the process however, you should be ready in case you are forced to.
It can be difficult to comprehend the bankruptcy procedure. The most important thing to be aware of is that the automatic stay is a legal precaution to prevent the creditor from taking any further actions against you. The creditor has the power to end any collection actions and if you don't, the creditor might be able to ask for a stay to be lifted by the court. Look at websites such as https://www.ljacobsonlaw.com/pa/harrisburg-bankruptcy-attorney/ for more information on bankruptcy and seek professional advice to answer your questions.
There are a myriad of instances of fraud in bankruptcy. Some people are manipulated into a situation that they assume is supposed to help them, but then discover that they're in greater in financial difficulty than they expected. Be sure to read the legal document and fully comprehend the terms you're signing before you sign any legal document.