Are You able to keep your property even if you file for bankruptcy?
Can you keep your property if you declare bankruptcy?
Secured debts can remain in bankruptcy
If you are a homeowner with a mortgage, car loan or other type of secured debt, you might be wondering if you can keep the property if you file for bankruptcy. While the majority of cases, you can but there are certain exceptions. You should discuss your specific situation with an attorney and understand the consequences of filing.
Secured debt is property which is secured by a lien on the debt. This is the first thing you need to know about it. There is a possibility for a creditor repossess your collateral if you are unable to pay your debts however they cannot claim against you in the event of filed for bankruptcy. You can keep your property in the event that you pay regular payments. But you will be unable to use your secured loan cannot be used to pay. In the case of a Chapter 13 bankruptcy, you have to renew your debt in order to keep your home.
Reaffirm your debts in bankruptcy if you are behind in mortgage or car payment. This will allow you to have the opportunity to address your financial problems and be back on track with your repayment schedule. It will allow the creditor access to your property and will cause you to lose the value of your property.
Secured creditors may be based on a security arrangement like a deed or trust mortgage, judgment lien. They are able to take your property if not pay the debt and can also collect interest and attorneys' costs from the property. After the debt is taken, you must reaffirm your payment or the debt will not be discharged.
Keeping your collateral can save you hundreds of dollars. However, you must retain the insurance you would have paid to secure your purchase, and you must continue to make your payments. You may negotiate the terms of a new contract with your creditor or transfer your collateral to a different person. Negotiations are possible and can lead to your creditor cutting or extending the time you pay them, or negotiating different terms.
Selling your property is another way to avoid foreclosure. If you're behind on your mortgage, some states permit creditors to take the equity of your home. If you're in an emergency and need the money, selling your property could help you pay off your loan.
Reaffirming debts in Chapter 7 bankruptcy is another alternative. While the majority of debts can be discharged in bankruptcy, liens attached to secured debts will not. These liens will be on your credit report and influence your credit score. After filing bankruptcy, it's essential to examine your credit reports.
Some debts can be paid off but be on your credit reports. You must also adhere to a specific timeframe in order to get your debts removed from credit reports. People often think they are aware of the regulations and rules and later discover that what they believed to be correct was everything but. Rules change, and often are not explained very well. Do your research prior to declaring bankruptcy. Although no one would like to go through the process, you should be prepared should you be forced to.
The bankruptcy process is confusing. The automatic stay, which serves as legal protection that stops creditors from taking any further action against you, is an important idea to remember. The debtor has the option of stopping collection activities, but you may refuse to stop them. If the creditor doesn't agree to this, they may be able to petition the court for the lifting of the stay. 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 get taken advantage of in a situation they assume is supposed to help them, but then discover that they're in much more financially trouble than they anticipated. Always read through any small print and be sure to understand what it is you are giving up and signing before you sign any legal document.