Determining whether a debt is secured in Littleton or anywhere else in Colorado is essential in a Chapter 7 and Chapter 13 bankruptcy. To be sure you know which of your debts are secured and how they are handled in a Chapter 7 or Chapter 13 bankruptcy in Colorado, call bankruptcy attorney Barry Arrington right away for a free initial consultation.
Secured Debt Bankruptcy Attorney in Centennial: What is the Definition of Secured Debt?
A secured debt in Centennial and across Colorado is a debt that is secured by property, or collateral. In other words, property has been pledged for the debt. If you fail to make payments, that property can be seized or repossessed. The most common types of secured debts in Colorado include car loans and home loans. For example, if you fail to make payments on your home or car, the lender can repossess your car or foreclose on your home.
Secured Debt in Littleton Chapter 7 Bankruptcy
If you live in Littleton or any other part of Colorado and file a Chapter 7 bankruptcy, there are different options available for handling secured debt. If you fall behind on your debt payments, you risk losing the property securing your debt. If you’re current on your payments and wish to keep your Littleton property, you are generally able to do so. Below are some options of handling secured debt in a Chapter 7 bankruptcy. Each of these options for handling secured debt in a Chapter 7 bankruptcy is complex and should always be discussed with a reputable bankruptcy attorney.
Redeeming Property in Chapter 7 Bankruptcy in Colorado
Redeeming the property securing the debt is one option. What you pay the creditor is the replacement value. Once you pay the repayment value, you own the property. Redeeming your secured property is generally ideal if you owe more than what the property is worth and want to keep the property.
Surrendering Property in an Aurora Chapter 7 Bankruptcy
If you do not want to keep the property due to its value in Aurora or anywhere else in Colorado, you may choose to surrender it and discharge any remaining debt. You may choose to surrender the property if you don’t need it, if you can no longer afford your payments, or you are unable to redeem the secured debt for various reasons.
Contact bankruptcy lawyer Barry Arrington if you have more questions about secured debt.
Chapter 13 Bankruptcy Secured Debt Cram Down in Lone Tree and Highlands Ranch, Colorado
In a Chapter 13 bankruptcy in Lone Tree, Highlands Ranch and across Colorado, there are also various options available to handle your secured debt. If you choose to keep your property, you may be able to use a cram down to reduce the principal balance of a debt and instead pay the replacement value of the collateral. After paying the replacement value in your repayment plan, you will own the property. If you don’t wish to keep the property, however, you can choose to surrender it to the creditor. Importantly, in Chapter 13, you can divide the debt between arrears and regular payments, and pay the arrears over time in your plan. Whatever is still owed of the secured portion you will pay in your Chapter 13 repayment plan. Contact bankruptcy lawyer Barry Arrington for more details surrounding secured debts in a Chapter 13 bankruptcy.
Secured Debt Denver Bankruptcy Attorney Barry Arrington: Call Today
If you are considering a Chapter 7 or Chapter 13 bankruptcy in Colorado and have more questions about which of your debts are secured and how they will be treated, call bankruptcy attorney Barry Arrington as soon as possible. Whether or not you wish to keep your secured property, you need a skilled bankruptcy lawyer to help you. Call Barry today to schedule a free initial consultation and be on your way to your best, fresh start.