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Can a secured debt be taken from you after it was discarged in a chapter 7?
Wiki User
∙ 15y ago
In most Chapter 7 cases you are not including secured property unless you are surrendering the property back to the creditor. If you are holding on to secured property during a chapter 7 process the property must be reaffirmed with the creditor at time of filing meaning you have an agreement with the creditor to leave the property out of the bankruptcy and continue to make your payments. When you discharge debt through chapter 7 it doesn't make sense that you could keep a secured piece of property and not pay for it. Maybe you were unclear about what you were really doing.
Wiki User
∙ 15y ago
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How soon after Chapter 7 bankruptcy can you have the title to a house or condo given to you?
Why should you get the title? If the debt is secured by the condo or house, you cannot get a discharge of that debt unless you surrender the asset in the chapter 7.
What is chapter 7?
Chapter 7 bankruptcy protects you from creditors and sells your non secured assets to pay the creditors that you owe. If you do not own an assets, you will not have to pay the creditors and the debt will be forgiven.
What is unsecured personal indebtedness?
Unsecured personal indebtedness is debt that is not secured against an asset. For example, a mortgage is a debt secured against an asset, being a house. If you fail to pay your mortgage, your house will be taken of you. An unsecured debt is that of a loan or credit card bill which is not backed up by an asset.
What does the concept of secured debt mean in finance?
Secured debt is a debt that is guaranteed by the use of collateral. If the debt is not repaid, the creditor has the right to take the collateral from the borrower.
Does a senior debt have priority over a secured debt?
Secured debt has priority over other debdtors to the secured property. If that does not saisfy the claim, then te remainder may be filed as a general claim, taking position below senior debt.
What is certificate of an ongoing debt In relation to Bankruptcy petition.?
This is not a term used in US bankruptcy courts. In a Chapter 7, when a secured debt is to continue as a debt, the debtor must file a Statement of Intention with regard to secured debt and may also have to sign a Reaffirmation Agreement which the lender files with the court. Many court require a hearing to determine if the reaffirmation will defeat the purpose of the bankruptcy.
What is Statement of intention in chapter 7?
A document filed to disclose which secured debts the debtor intends to reaffirm. The debtor typically reaffirms debts secured by collateral he wants to keep. When a debtor reaffirms a debt, it is excepted from the discharge. The debtor can be sued on the debt if he fails to pay it, even after the discharge is entered.
Is payroll considered a secured debt in Florida?
No...what could it possibly be secured to or by?
What happens during a chapter 7 or 13 BK with 2 financed vehicles if you don't want them or can't afford to reinstate them and will they both be repossessed or will you be stuck with one of them?
Vehicles are considered secured debt any action taken such as repossession, lawsuits to recover debt owed, reaffirmation agreement and so forth is strictly up to the lender.
If you file chapter 7 can you keep your secured debt?
You may be able to keep some or even all of your secured debt. Simply reaffirm at the time you file, or it can be done as an addendum later. Your attorney will be familiar with the process. Keep in mind that the additional debt you keep may make it difficult or impossible to continue with the bankruptcy. Consider this as you decide what to reaffirm and what to surrender.
What is the difference between secured debt and unsecured debt?
A secured debt - is protected by being tied to something valuable (jewellery, car, house etc). If you default on the repayments, you could lose the item the debt is secured on ! An unsecured debt is not tied to any physical property. If you default on an unsecured debt, they will usually take you to court and have the debt recovered from your wages.
Can you get your car back if you file a chapter 7 bankruptcy before it is auctioned off?
If the lender is willing to reaffirm the loan with the borrower then the vehicle can be returned. A vehicle is a secured debt and is not subject to chapter 7 bankruptcy laws.
