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What happens if you sell your secured debt you file bankruptcy and the original creditors want the items back?
Assuming you mean you sold the item that was security for the debt, you violated the contract and may have committed a crime if you did not pay the debt off with the proceeds. The creditors can ask the bankruptcy court to deny your discharge or dismiss your case, and charge you with fraud, a federal crime. if you failed to disclose the sale in the bankruptcy documents.
They may not get the items back, but you will have to pay the creditors what you owe. Even if you land in jail or federal prison, you will have to pay the debt off.
What else can I help you with?
What are creditors holding secured claims?
If you signed a Security Agreement, then your creditor has a secured claim on the collateral specified in the agreement.
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.
Would you have to pay monthly notes in filing chapter 7 on my vehicle?
You don't file bankruptcy "on your vehicle." You file bankruptcy to discharge all your debts. You don't get to pick and choose which creditors. But, secured creditors either have to continue to be paid or you have to surrender the collateral, in which case the balance due on the secured note would be discharged.
Will your mortgage company know if you filed bankruptcy?
Yes. When you file bankruptcy you are required to fill out a number of forms. Schedule D is the form for Creditors holding secured claims and a home mortgage is a Secure Debt. You will have a complete list of all your creditors names, addresses, account numbers on a form called the Creditor's Mailing Matrix. The Bankruptcy court sends notification to all the creditors listed that you have filed bankruptcy.
What happens when a creditor doesn't file a proof of claim in a bankruptcy case?
If it is not a secured debt it will be included in the bankruptcy discharge.
What is the top priority when distributing assets from someone declaring bankruptcy?
Secured creditors to the extent of their security on specific property (e.g., mortgage interest on real property)
Is it all that bad to claim bankruptcy?
This is a personal decision, greatly influenced by the amount of serious debt and your ability to meet the original payments or pay the full amount. Being hassled by creditors when you are broke is nerve wracking for starters. Secondly, the decision to file should not be made solely to stop demanding creditors. Though filing temporarily stops creditors from engaging in out-and-out enforcement lawsuits, secured creditors can apply for "relief from the stay" and then continue their efforts to repossess or foreclose. Furthermore certain kinds of debts-chief among them, student loans, alimony and support obligations, drunk driving restitution, and debts incurred through fraud-can't be discharged in bankruptcy. Depending on your circumstances, bankruptcy may or may not make sense for you. If after the bankruptcy you will be no better off than you were before, why do it? The decision as to whether and when to file a bankruptcy petition should be based upon the facts of your individual case.
When filing bankruptcy which chapter eliminates all debt?
It depends. Most any of the types can, or may not. Some considerations are if your speaking of a business (Corporation) or personal bankruptcy, if the debts are secured or not, and how much of what type of assets there are and if any of them are to be maintained after the bankruptcy as determined by the Court and creditors. There is no personal bankruptcy where secured debts or other obligations such as child support arrearages. A chapter 7 is a total liquidation bankruptcy in which the debtor can discharge all debts that are not secured including judgments, liens that have not been "perfected", stop wage garnishment, etc. The petitioner will however be required to relinquish all non exempted property.
How long can a company stay in bankruptcy proceedings?
There is no timeframe. Some take years. Some creditors can file suit in the bankruptcy court to protect claims if need be. This is normally used on items such as cars that go down in value over time and are secured claims.
Can the bankruptcy court confirm the debtor's plan of reorganization?
A court can confirm a plan if that plan proposes to pay secured and priority creditors in full and unsecured creditors an amount that is fair and equitable. Thus, even if creditors do not vote in favor of the plan, the court can confirm it as long as it is fair to those creditors. The reasoning is that the court knows what is best and will not allow creditors to thwart the ultimate purpose of the code which is to provide for creditors what is fair based upon the financial circumstances of the debtor
After bankruptcy you got inheritance can a creditor with a secured promissory note go after the inheritance?
No exactly. If you inherit any money within 180 days after you filed the bankruptcy, it will become property the estate. The creditors cannot go fater it, but the trustee can force you to turn over the inherited assets. See section 545 of the bankruptcy code.
What is the corporate bankruptcy law?
Corporate bankruptcy laws consists of protection for the companies involved, Stockholders are usually the ones who end up not getting refunded even with the law behind them. Unsecured creditors are next in line for repayments. Secured lenders like banks are certain to get what is owed to them back.
