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.
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 …
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…