Can You Keep Your Property If You File for Bankruptcy?
Can you keep your property even if you file for bankruptcy?
In bankruptcy, secured loans can be protected
If you have a home mortgage or car loan, or any other type of secured debt, you might be wondering if you can keep the property in the event that you file for bankruptcy. While the answer is generally yes however, there are a few exceptions to the general rule. It is important to speak with an attorney about your specific situation and consequences of filing.
Secured debt is a property that is an obligation to the debt. It is the first thing you need to know about it. There is a possibility for a lender to repossess your collateral if you do not pay your bills, but they cannot pursue you if you are in filed for bankruptcy. You are able to keep your property as long as you make regular payments. However you will be unable to use your secured loan cannot be used to repay. If you file a Chapter 13 bankruptcy, you will need to reaffirm your debt in order to keep your property.
If you are behind in your car or mortgage payments, you'll need to reinstate the debt in your bankruptcy. This gives you an opportunity to resolve your financial issues and get back on track with your payment plan. It will allow the creditor to access your property and will cause you to lose the value of your property.
Secured creditors can be based on a security arrangement like trust or deed mortgage, judgment lien. They can repossess your property if not pay the debt, and they can get interest and attorneys' fees from your property. You must make sure you make the payment again once it's repossessed.
You could save hundreds of dollars by holding your collateral. However, you have to keep the insurance you paid to secure your purchase, and continue to make your payments. You may negotiate the terms of a new contract with your creditor, or transfer your collateral to someone else. Negotiations are possible and can lead to your creditor cutting or extending the time you pay them, or negotiating other conditions.
Selling your home is another way to avoid foreclosure. Certain states permit creditors to take the equity in your home, especially if you're in default on your mortgage. Selling your property may be a way to pay your debt if you are facing an emergency or you need the money.
Another alternative is to confirm the debt during a Chapter 7 bankruptcy. Most debts will be wiped out by bankruptcy, however certain liens associated with some secured debts will not. These liens will remain on your credit report, and will impact your credit score. After bankruptcy, it's important to examine your credit reports.
Some debts can be paid off but they will remain on your credit report. You must also adhere to a specific timeframe in order to have your debts deleted from credit reports. Most people think they're familiar with the regulations and rules, only to find that they're wrong. Rules change and are often not explained very well. The best option is to research prior to filing for bankruptcy. No one would ever want to do that, but in the event you're in that circumstance, you must be aware of everything you need to know prior to deciding.
It is often difficult to understand the bankruptcy process. The automatic stay, which is legal protection that stops creditors from taking further actions against you, is a crucial fact to keep in mind. The debtor is able to stop the collection process, but you can choose not to stop them. If the debtor doesn't agree, they might be able to ask 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's a lot of bankruptcy fraud that is circulating. Sometimes people get taken advantage of in a situation they believe is meant to be beneficial, only to discover that they're in greater financially trouble than they anticipated. Before signing any legal document, make sure you review the specifics.