How is Secured Debt Handled in a Bankruptcy?
Secured Debt Specialist & Denver Bankruptcy Lawyer Christopher German
If you have debt that is secured by property, like a mortgage or car loan, you have several options.
- Surrender the property to the secured creditor and wipe out the debt.
- Reaffirm the debt with a written reaffirmation agreement, which is then filed with the court. In this instance, you keep the collateral and continues making payments the same monthly payment or some agreed upon reduced amount.
- Redemption of Property, from the creditor by paying the creditor a reduced amount. When you redeem property typically the property is paid off in a lump sum.
- Avoid the lien, you retain property and make no further payments. Typically this can only be done only in cases where you have put up household goods as collateral for a loan. It is also possible to “avoid” a second mortgage.
It is possible for you to keep your property, keep making the payments and not officially reaffirm the debt. If you default, the secured creditor will have the right to proceed with repossession of the property. But the creditor will not be allowed to hold you personally liable if the property is sold for enough to pay off the debt.
An experienced Denver bankruptcy Lawyer, Christopher German has assisted over 1000 debtors in Denver and other areas of Colorado.
Get a fresh start by filing for bankruptcy with the Law Office of Christopher German.
Get your FREE CONSULTATION at 720-675-8070.
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Contact us to defend you against heartless creditors and file your Denver Bankruptcy. Call The Law Office of Christopher German, get your FREE CONSULTATION at 720-675-8070, you’ll be glad you did!