Secured Debts in Bankruptcy
Secured debt is debt that is secured by an item that the creditor could reclaim if the debt is not paid. In bankruptcy cases, many of the most important belongings are attached to secured debt, such as cars and houses.
At Rothschild & Ausbrooks, PLLC, our attorneys know that your real concern is whether bankruptcy will be able to help you with your secured debt. The short answer is that it will, although possibly not in the way that you expect.
We have more than three decades of experience helping people in Nashville and throughout Tennessee. We know how to make bankruptcy work for you, regardless of the type of debt you face. Contact us by email or call 615-866-2265 or toll free at 866-656-8909 for a free consultation.
What Is Considered Secured Debt in Bankruptcy?
Car loans are considered secured debt, because the creditor could repossess your car if you do not make your payments. In fact, you may have already received this threat. Similarly, your mortgage is a secured debt, because the bank could foreclose on your home if you fall behind on your payments.
Other examples of secured debt include:
- Boat loans
- Recreational vehicle (RV) loans
- Personal loans obtained from private financing companies
- Furniture purchased on department store credit
- Debt from secured credit cards
Debt that is not secured is called unsecured debt and is often immediately dischargeable in bankruptcy.
Do You Want to Keep Your Property?
Many people believe that they will have to give up their property if they file bankruptcy. In reality, you will most likely be able to keep your house and your car, as well as all other property, if you want to. In order to keep them, though, you must be able to keep up to date with your payments. Bankruptcy can help you catch up.
However, if your house or your car simply does not mesh with your income, bankruptcy provides you with a great opportunity to get rid of it and look at something that makes more sense for you.
Our lawyers will not push you in any direction. We will educate you about the different chapters of bankruptcy, and we will tell you how each will impact your specific debt problems. We will guide you toward a future that is debt-free.
Contact Us for a Free Bankruptcy Consultation
Please contact Rothschild & Ausbrooks, PLLC, today to get answers about secured debts in bankruptcy.