Secured Property And Chapter 7 Bankruptcy

Bankruptcy Attorney


There are a number of considerations in bankruptcy, and one is the secured property that you may have. Most bankruptcy attorneys and bankruptcy trustees will normally advise that you should either pay off any secured property or you should return the property so the debt can be eliminated if you file for chapter 7 bankruptcy. In most cases secured property with a lien can be handled in one of several ways but each case may be different.


If your property has a lien placed against it then the creditor can enforce this lien and take the property when payments are missed. Any collateral that was provided to secure a loan can be repossessed or foreclosed on. When you file for chapter 7 bankruptcy protection some liens may be given a second change by the creditor or the bankruptcy court. When you are filing for chapter 7 bankruptcy and you have secured debts there are a number of considerations and options.


A reaffirmation is one option. You may choose to reaffirm the debt if you want to keep the secured property and you plan on making the payments until the debt is paid off. A reaffirmation is a mutual agreement between you and the creditor and involves a signed contract in most cases.


With some secure property you can choose redemption. The court will determine the fair market value of the secured property and then you will pay this amount to keep possession of the property and pay off the security interest on the property. Most mortgages can not be redeemed, and many lawmakers believe this should be changed but so far no legal action has been taken.


If you can not make the payments on the secured property and you are willing to let the property go then you can surrender the property. In most cases if the creditor has the property back you can have any balance owed eliminated through discharge.


A ride through is another option in some chapter 7 bankruptcy cases involving secured property. If the creditor has no cause of action to enforce the property lien then a breach of contract does not exist. In some cases this debt may be discharged under the chapter 7 bankruptcy laws. A qualified bankruptcy attorney can answer any questions you may have about secured property and chapter 7 bankruptcy.


The bankruptcy attorneys at Richard West Law can provide a free debt consolidation consultation to help you find the right answer for your unique debt problems and circumstances. Visit or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

Leave a Reply

Your email address will not be published. Required fields are marked *