We Can Help Bring Clarity To Your Debt Issues

Many of the people who contact our office contemplating bankruptcy have questions about the type of debts that may be discharged. Frequently, we find that there is a lot of confusion about the different impacts that bankruptcy may have on secured versus unsecured debts.

With a Chapter 7 bankruptcy, people may discharge most forms of consumer debts, including credit card bills, medical bills, certain tax and judgment debts, and other unsecured debts. People may also discharge secured debts, but they may not keep the property that is the subject of the secured debts.

People may discharge the remaining debt that they have on their vehicle, for example, but their vehicle may then be repossessed by their auto lender. The same is true of a home. The debt owed on a home may be discharged through bankruptcy, but the person obtaining a bankruptcy discharge may not keep his or her home and avoid payment of a home loan.

Keeping Secured Debts While Obtaining Debt Relief

There are a few exceptions to what has been stated above. If your auto loan is sufficiently old and you owe more than the current retail value of the vehicle, you may be able to keep your vehicle and only repay the current retail value of the vehicle. For example, if you owe $10,000 on your auto loan and the retail value of your car is only $7,000, you may be able to keep your car and only pay $7,000 through a Chapter 13 bankruptcy. However, you could not keep your car and simply choose not to make any further payments. Read our sections on Chapter 13 bankruptcy and auto repossession to learn more.

Another possible exception is your second home mortgage debt. If you owe more debt on your first mortgage than the value of your home, you may be able to keep your home and discharge the debt you owe on your second mortgage. Visit our section on second mortgage lien stripping to learn more.

Understand How Bankruptcy May Affect Your Property Rights

Before you file for bankruptcy, it is important that you understand how bankruptcy will affect your property and your rights. Let us put our experience to work for you. To schedule a consultation with an experienced attorney, contact the Law Offices of James V. Sansone at 707-623-1875.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.