Are You able to keep your property if you declare bankruptcy?
Can You Keep Your Property If You Declare Bankruptcy?
In bankruptcy, secured debts can be kept
It is possible to ask whether you are allowed to keep your home, car loan, or other secured debt when bankruptcy is filed. Although the general answer is yes however, there are a few exceptions to this rule. It is important to speak with an attorney regarding your particular situation and the consequences of filing.
Secured debt is a property that is an obligation on the debt. This is the first thing you need to know about it. If you default on your payments, a creditor can repossess your collateral. However, they can't sue you for bankruptcy. So long as you're making payments, you can keep your home, but you will not be in a position to use it to repay the secured debt. If you file a Chapter 13 bankruptcy, you have to renew your debt in order to keep your property.
If you're behind in your car or mortgage payments, you'll need to reinstate the debt in your bankruptcy. This gives you the opportunity to address your financial issues and be back on track with your repayment schedule. But, it could allow the creditor to seize the property, which can result in you losing the value of the property.
Secured creditors can be built on a security agreement, such as a deed or trust mortgage, judgment lien. They may take possession of your property if not make your payments and can also get interest and attorneys' fees from your property. Once the debt is repossessed and you are required to reaffirm your payment or the debt won't be discharged.
The collateral you have saved you hundreds of dollars. You should keep the insurance that you paid to secure the purchase and continue to make your payments. Negotiate the terms of a new contract, or transfer your collateral. Negotiations may be productive, leading to an increase in your debt from a creditor, giving you an extension of time for payment, or providing different conditions.
Selling your property is a different option to avoid foreclosure. Some states allow lenders to take the equity in your home, in the event that you're in default in your mortgage. Selling your home could be a viable option to pay your debt if you are facing urgent needs or need the cash.
Reaffirming the debt in Chapter 7 bankruptcy is another alternative. A majority of debts are wiped out in a bankruptcy, however certain lien liens that are associated with certain secured debts won't be. These liens will still be on your credit report and they will affect your credit score. Therefore, you must check your credit report after the bankruptcy filing.
Some debts can be paid off but will still be on your credit reports. It is also necessary to adhere to a specific timeframe in order to get your debts deleted from credit reports. People often think they are aware of the rules and regulations and then find out that what they assumed to be true was anything but. Rules can change, and at times, they're not easily understood. The best thing to do is to research prior to filing for bankruptcy. No one would like to declare bankruptcy, but if you're in that circumstance, you must be sure you know everything you must be aware of prior to proceeding.
The bankruptcy process can be difficult to understand. The automatic stay, which serves as legal protection that stops creditors from taking further actions against you, is a crucial fact to keep in mind. The debtor is entitled to stop any collection action and if you don't, the creditor might be entitled to request 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 numerous instances of fraud in bankruptcy. Sometimes people are manipulated into thinking they're getting help by a bankruptcy lawyer, however, they are in a much more dire financial situation than they thought. Before you sign any legal documents, make sure that you have review the fine print.