Can You Keep Your Property In the event of declaring bankruptcy?
Can you keep your property if you declare bankruptcy?
In bankruptcy, secured debts may be protected
If you have a home mortgage, car loan or other kind of secured debt you may wonder whether you could keep the property in the event that you declare bankruptcy. While the majority of time you can but there are certain exceptions. It is essential to talk with an attorney about your specific situation and consequences of filing.
Secured debt is property which is an obligation on the debt. It is the first thing you need to know about it. It is possible for a lender to repossess your collateral if you do not pay your bills however, they are not able to claim against you in the event of a bankruptcy. Your property can be kept as long as you make regular payments. However you will be unable to use your secured loan cannot be used to pay. If you file the case of a Chapter 13 bankruptcy, you must reaffirm your debt in order to keep your property.
Reaffirm your debts through bankruptcy if you're in debt on mortgage or car payments. This will allow you to have the chance to fix your financial problems and get back on track with your repayment schedule. But, it could allow the creditor to seize your home, which could cause you to lose the value of the property.
Secured creditors may be based on a security arrangement, such as trust or deed, mortgage, or judgment lien. They are able to take your property if not pay your debts and also collect interest and attorneys' fees from your property. It is imperative to pay the debt again after it is repossessed.
You can reduce your expenses by keeping your collateral. However, you have to keep the insurance you would have taken out to secure the purchase, and you must continue to pay your bills. Either negotiate the terms of a new contract, or transfer your collateral. Negotiations are possible and can result in your creditor reducing or extending the time you pay them, or negotiating additional conditions.
Selling your property is another method to stay out of foreclosure. If you're in default on your mortgage, some states permit creditors to seize the equity in your home. Selling your property may be a way to pay your debt in the event of an emergency situation or require the cash.
Reaffirming the debt in Chapter 7 bankruptcy is another alternative. Most debts will be wiped out during bankruptcy, however certain the liens attached to certain secured debts won't be. These liens will remain on your credit report, and will impact your credit score. After filing bankruptcy, it's essential to review your credit report.
Certain debts are able to be paid off but they will be on your credit reports. You must also adhere to a specific timeframe in order to get your debts deleted from credit reports. People often assume they are well-versed in the regulations and rules, but then realize they were wrong. Rules change and are often not explained very well. Make sure you are informed before declaring bankruptcy. While nobody wants to go through this but you must be prepared in case you are forced to.
The bankruptcy process can be complicated. The automatic stay, which is a legal safeguard to stop creditors from taking any further action against you, is a crucial aspect to be aware of. The creditor has the power to stop any collection action, but if you refuse, the creditor might be entitled to request the court to lift 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 is a lot of bankruptcy fraud that is circulating. Sometimes people are manipulated into thinking they're getting help by a bankruptcy attorney, however, they are in deeper financial trouble than they thought. Before signing any legal document, make sure you review the small print.