Can You Keep Your Property If You Declare Bankruptcy?
Are you able to keep your property even if you declare bankruptcy?
Secured debts can remain in bankruptcy
It is possible to ask if you are allowed to keep your car, home loan, or any other secured debt in the event of bankruptcy being filed. However, the majority of times, it is true, there are certain exceptions. It is important to speak with an attorney regarding your specific situation and the implications of filing.
Secured debt is property that is an obligation on the debt. This is the very first thing you need to know about it. There is a possibility for a creditor confiscate your collateral if are unable to pay your debts however, they are not able to pursue you if you are in a bankruptcy. Your property can be kept in the event that you pay regular payments. But, your secured loan is not able to be used to pay. If you would like to keep the property you own, you'll be required to reaffirm the debt in Chapter 13.
If you are behind in your car or mortgage payment, you'll have to reaffirm the debt in your bankruptcy. This will allow you to have an opportunity to resolve your financial problems and return to your payment plan. But, it could allow the creditor to seize your property, which will result in you losing the value of the property.
Secured creditors are built on a security agreement like trust or deed mortgage, judgment lien. If you fail to pay your debts they may acquire possession of the property and collect attorney's fees and interest. You must make sure you pay back the debt after the property is taken.
Keeping your collateral can save you hundreds of dollars. However, you must retain the insurance you taken out to secure the purchase, and you must continue to pay your bills. Negotiate the terms of a new contract, or sell your collateral. Negotiations may be fruitful, with the result of the creditor being able to reduce your debt, giving you an extension of time to pay, or negotiating additional conditions.
Selling your property is another method to stay out of foreclosure. If you're behind on your mortgage, a few states allow creditors to seize the equity in your home. If you are in an emergency and need the cash, selling your property can help you repay your credit card.
Reaffirming the debt in Chapter 7 bankruptcy is another alternative. Most debts will be wiped out in a bankruptcy, but some liens associated with some secured debts will not be. These liens will remain on your credit report and they can affect your credit score. Therefore, you should check your credit report after the bankruptcy filing.
Certain debts are able to be paid off but they be on your credit report. There is also a statute of limitations which requires a certain amount of time to be removed from your credit history. Oftentimes people think they know the regulations and rules, only to they discover that what they thought to be correct was everything however. Rules can change, and sometimes they are not easily understood. The best way to stay informed is to research prior to declaring bankruptcy. It is not something that anyone would ever want to do that, but if you are in the situation , it is important to know all you need to know before proceeding.
The bankruptcy process can be complicated. The automatic stay, which serves as a legal safeguard to stop creditors from taking any further action against you, is a crucial aspect to be aware of. The debtor has the option of stopping collection activities, but you may refuse to do so. If the creditor is not satisfied with the stay, they could be able to 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 a myriad of instances of bankruptcy fraud. Sometimes people are manipulated to believe they're being assisted by a bankruptcy attorney, but they end up in deeper financial trouble than they thought. Make sure you read any fine print and really understand the implications of what you are giving up and signing before you sign any legal document.