Are you able to keep your property even if you file for bankruptcy?
Can You Remain in Your Home In the event of declaring bankruptcy?
In bankruptcy, secured loans can be protected
If you're a homeowner and have a mortgage or car loan, or another kind of secured debt you might be wondering whether you could keep the property if you file for bankruptcy. Although the majority of the times, the answer is yes however, there are certain exceptions. It is recommended to discuss your particular issue with an attorney to be aware of the implications of filing.
Secured debt is property which is secured by a lien to the debt. This is the very first aspect you should know about it. There is a possibility for a lender to take possession of your collateral if you fail to make your payments however, they are not able to sue you if you have filed for bankruptcy. You can keep your property in the event that you pay regular payments. However you will be unable to use your secured loan cannot be used to pay. If you file a Chapter 13 bankruptcy, you have to renew your debt if you wish to keep your property.
If you're in debt on your mortgage or car payment, you'll have to reaffirm the debt in your bankruptcy. This will give you the opportunity to address your financial troubles and return to your repayment plan. It allows the creditor access to your home and could cause you to lose the property's value.
Secured creditors are based on a security agreement, such as a deed of trust or mortgage or judgment lien. If you do not make your payments, they can be able to take possession of your property and demand attorney's fees and interest. Once the debt is repossessed, you must reaffirm your loan or the debt won't be discharged.
Keeping your collateral can save thousands of dollars. But you must keep the insurance that you purchased to protect your purchase, and keep making your payments. Either negotiate an agreement with a new vendor or sell your collateral. Negotiations may be productive, leading to the creditor being able to reduce your debt or extending the period of time to pay or offering additional terms.
Selling your property is a different way to avoid foreclosure. If you're in default on your mortgage, some states allow creditors to seize equity in your property. Selling your property could be a way to pay your debt in the event of an emergency situation or require the money.
Reaffirming the debt in Chapter 7 bankruptcy is another alternative. The majority of debts will be cleared out during bankruptcy, but certain liens associated with some secured debts will not. These liens will remain on your credit report and impact your credit score. Following bankruptcy, it's essential to examine your credit reports.
There are certain loans that can be repaid but remain on your credit report. It is also necessary to adhere to a specific timeframe in order to have your debts taken off of credit reports. Many people believe they are well-versed in the regulations and rules but then realize they're wrong. Rules change, and often are not clearly explained. Be sure to research the rules before you declare bankruptcy. Although nobody wants to go through this however, you should be ready in case you are forced to.
It is often difficult to comprehend the bankruptcy process. One important piece of information to keep in mind is that the automatic stay is a legal precaution to stop the debtor from taking other action against you. The debtor is entitled to end any collection actions and if you don't the creditor could be able to ask 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's a lot bankruptcy fraud that goes around. Some people are tricked to believe they're being assisted by a bankruptcy lawyer but they end up in deeper financial trouble than they thought. Before you sign any legal document, make sure you review the fine print.