Can You Keep Your Property If You File for Bankruptcy?
Can You Remain in Your Home If You File for Bankruptcy?
In bankruptcy, secured debts can be protected
You might be wondering whether you are allowed to keep your car, home loan, or another secured debt when bankruptcy is filed. While the majority of time the answer is yes but there are certain exceptions. It is essential to talk with an attorney about your specific situation and implications of filing.
The first thing you need to know about secured debt is that it's an asset that has an obligation on the debt. If you fail to make your payment, a creditor may repossess your collateral. However, they cannot claim bankruptcy against you. As long as you are making payments, you can keep your property, but you won't be able to utilize it to repay the secured debt. If you want to keep the property you own, you'll need to confirm the debt in Chapter 13.
Reaffirm your debts through bankruptcy if you are behind in mortgage or car payment. This will let you solve your financial issues and get back on track with your payments. It allows the creditor to gain access to your home, and result in you losing the property's value.
Secured creditors can be made up of a security arrangement that includes a deed or trust mortgage, judgment lien. If you don't pay your debts, they can take possession of the property and demand fees and interest. After the debt is taken and you are required to reaffirm your loan or the debt will not be discharged.
The collateral you have saved thousands of dollars. But you must keep the insurance you purchased to protect your purchase, and you must continue to make your payments. You may negotiate a new contract with your creditor, or transfer your collateral to a different person. Negotiations can be productive, leading to the creditor being able to reduce your debt and extending your period of time to pay, or providing additional conditions.
Another method to avoid foreclosure is to sell your home. If you're in default on your mortgage payments, certain states allow creditors to seize the equity in your home. If you're in an emergency and need the cash, selling your home could help you pay off your debt.
Another alternative is to confirm the debt in the form of a Chapter 7 bankruptcy. Most debts will be wiped out by bankruptcy, but certain the liens attached to certain secured debts will not be. These liens will remain on your credit report, and could affect your credit score. So, it is important to be sure to check your credit score after the bankruptcy filing.
Certain debts are able to be paid off, but they will still remain on your credit report. It is also necessary to meet a deadline in order to get your debts taken off of credit reports. Most people think they're well-versed in the rules and regulations, but then realize they're wrong. Rules can change, and at times, they're not clearly explained. Do your research before declaring bankruptcy. No one would like to declare bankruptcy, but in the event you find yourself in that situation , it is important to be aware of everything you need to know prior to deciding.
It can be difficult to understand the bankruptcy procedure. The automatic stay, which is an legal protection to prevent creditors from taking any further action against you, is an important idea to remember. The debtor has the option of stopping the collection process, but you can choose not to do so. If the creditor doesn't agree, they might be able petition the court to lift the suspension 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 many cases of bankruptcy fraud. Some people are tricked into believing they're being helped by a bankruptcy lawyer but end up in deeper financial trouble than they anticipated. Before signing any legal documents, be sure that you have review the small print.