Handle Your Secured Debts in Utah through Chapter 13

Chapter 7 gives you advantages with secured debts. But Chapter 13 can be much better.  Starting with a much stronger “automatic stay.”

  The last blog post explained how filing a Chapter 7 “straight bankruptcy” can:

1) temporarily or permanently stop your secured creditors from taking your property in which they have a lien;

2) prevent creditors with an unsecured debts from turning it into secured debts;

3) help you keep the property which has a creditor’s lien; and

4) if you want, enable you to surrender the collateral to the creditor without owing anything more on the debt thereafter.

However,…

Use Chapter 7 to Get Power over Your Secured Debts

Through bankruptcy: stop repossession and foreclosure, unsecured debts turning into secured debts, keep or surrender collateral as you wish.

Our last blog post a couple days was about secured debts. We explained that for a debt to be legally secured against something you own the creditor must go through certain steps to accomplish that, or else it won’t be secured. We showed how you could contractually enter into a secured debt voluntarily. But our blog post also showed that a creditor can turn its unsecured debt into a secured one by suing you or using other means of involuntarily imposing…

Your Secured Debts

A creditor with a secured debt has a lien on something you own. That lien may or may not be voluntary; it may or may not actually exist.

  The last couple months we have been discussing your bankruptcy options with debts secured by your vehicle, by your home, and by investment or business real estate. You can have debts secured by many other kinds of security—furniture and appliances, other personal property you buy or else had owned beforehand, business equipment and inventory, personal possessions that are subject to an income tax or judgment lien. These are just some of…

Resolving Statutory Liens on Your Utah Home

Bankruptcy does not remove contractor’s liens or other statutory liens from your home. But it can help you deal with them.

  A bankruptcy “discharge” legally and permanently wipes out your personal liability for most debts.

But it doesn’t automatically remove liens from your home. Each different type of lien is dealt with differently in bankruptcy, so it can certainly be confusing. The blog posts of the past three weeks have been about these difference, regarding liens securing first and second mortgages, property taxes, income taxes and judgments.

Today we’re talking about a category that does not get much attention on…

Stripping Judgment Liens from Your Utah Home

Bankruptcy usually can’t erase liens on what you own. But judgment liens on your Utah home can be an exception.   Our last blog post was about judgment liens, why they are so dangerous, and how both Chapter 7 and 13 types of bankruptcy can deal with them. Today’s blog post explains what determines whether a particular judgment lien can be removed, or “avoided,” and how that’s done. The Rules for “Avoiding” Judgment Liens If a creditor has sued you and gotten a judgment, and your name is on the title of any real estate, including your home, most likely that…

Chapter 7 vs. Chapter 13–“Cramdown” on Personal Property Collateral

How does Chapter 13 help you keep (or surrender) collateral on a debt?   Last time we explained the crucial difference between secured and unsecured debts, and focused particularly on “purchase money” secured debts. That led to laying out the advantages Chapter 7 “straight bankruptcy” gives you when dealing with something you bought that is now collateral on the debt you owe. Today we show the often even greater advantages that come under Chapter 13 “adjustment of debts” with this kind of collateral. Creditor Leverage under Chapter 7 We showed last time how under Chapter 7 a secured creditor can require…

Chapter 7 vs. Chapter 13–Personal Property as Purchased Collateral

How does bankruptcy treat something you bought—furniture, an appliance, or some electronics—when that thing is collateral on a debt?   In our last couple blog posts we compared how Chapter 7 “straight bankruptcy” and Chapter 13 “adjustment of debts” each deal with vehicles that are collateral on vehicle loans. Today let’s look at other personal property that you buy on credit where the creditor has the right to repossess the stuff if you don’t pay the debt. Secured and Unsecured Debts We first need to determine whether the creditor really has a right to repossess if you don’t pay. That’s not…

Chapter 7 vs. 13–Encumbered Assets to Keep or to Let Go

Some of your assets are encumbered by debts, and bankruptcy helps you protect or surrender those assets.   Collateral and Other Security on Secured Debts Everything you own is either legally encumbered by a debt or is yours free and clear of any debt. Possessions which are encumbered by a debt can be encumbered voluntarily, such as when you buy on credit. You buy a vehicle and give the vehicle loan creditor a lien on the title. You buy a home and the mortgage lender gets a mortgage on the home. You buy an appliance and give back a security interest…

Making Sense of Bankruptcy: How Secured Debts in Utah are Treated in a Chapter 7 “Straight Bankruptcy”

Bankruptcy in Utah pays a lot of attention to and can help you deal with your secured debts in many favorable ways.   Here’s today’s sentence that we’re explaining to help you understand bankruptcy:

Filing a Chapter 7 case gives you some truly important benefits for dealing with your secured debts: protection from repossession of the collateral, writing off other debts so you can afford to pay the secured debt, excluding the secured debt from write-off through “reaffirmation,” payoff of the secured debt through “redemption,” and surrender of the collateral with write-off of any remaining …

Making Sense of Utah Bankruptcy: How Does Chapter 7 Handle the Collateral Securing My Debts?

When you file a  Chapter 7 “straight bankruptcy” case in Utah you can keep and pay for collateral or return it and not pay the debt.   Here’s today’s sentence that we’re explaining to help make sense of bankruptcy:

If a debt is truly secured by collateral you usually have the option of keeping that collateral and paying the debt—likely in full regardless of the value of the collateral—or giving the collateral back to the creditor and usually paying nothing more on that debt.

Verifying that the Collateral Actually Secures the Debt A debt that is legally secured by something…