Many people who live in Centennial, Aurora or anywhere else in Colorado have assets or property they’re worried about keeping when filing Chapter 7 or Chapter 13 bankruptcy. One thing that helps determine what property you can keep is whether the debt is secured. This is also known as “secured debt”. In today’s blog, we’ll look more closely at secured debt and liens when filing Chapter 7 or Chapter 13 bankruptcy in Centennial and across Colorado.
What Are Secured Debts in a Highlands Ranch Bankruptcy?
People usually offer their homes or cars as collateral for a loan.
Secured debt in Highlands Ranch and Lone Tree is a loan that’s secured by collateral. People usually offer their homes or cars as collateral for a loan to purchase that property. If they don’t keep up with debt payments, the collateral can be repossessed. In a Chapter 7 bankruptcy filing, you can choose what to do with your collateral. Your options are to surrender (give up) the property, redeem (buy) the property, or to reaffirm the debt. Reaffirming the debt means you can choose to pay a debt that would otherwise be discharged. An expert bankruptcy lawyer is essential to determine which of these options is right for you. In most Chapter 13 filings, you can usually keep your collateral depending on the repayment plan you make with your bankruptcy lawyer.
What is a Lien in Greenwood Village Bankruptcy?
Liens in Parker, Lone Tree and across Colorado are related to secured debts. A lien means a lender can keep a borrower’s property if he / she fails to pay his / her debt. In other words, a creditor’s legal right to repossess your collateral (a home or a car) is called a lien. For example, if you fail to make payments on your car loan, a lien allows a lender to take possession of your car until you make those payments.
[pullquote align=”center” textalign=”center” width=”100%”]Secured debts and liens are complex. Always consult a bankruptcy attorney if you have any questions.[/pullquote]
Why You Need an Expert Denver Bankruptcy Lawyer
Secured debts and liens can be complicated to understand when filing Chapter 7 or Chapter 13 bankruptcy in Denver, Greenwood Village and across Colorado. If you’re confused about secured debt in a Denver bankruptcy filing, don’t hesitate to contact me. In many cases, your secured debt can be discharged. But, you should always consult a knowledgeable bankruptcy attorney to learn more about secured debt and to find which bankruptcy filing is right for you. It could make the difference between keeping your secured property or losing it.
Gaining knowledge about secured debts and liens when filing Colorado bankruptcy will help lessen the intimidation of bankruptcy and get you started on your fresh start sooner. Contact the best Centennial and Littleton bankruptcy lawyer Barry Arrington at 303-205-7870. Or, submit the “Get Help Now” form, and he will ensure you get the best, fresh start possible.