What Are Secured debts?

Secured Debts are debts that are tied to your property such as car loans and home mortgages.  Better stated, secured debts are those which the creditor has a claim which is secured by property of the bankruptcy estate in accordance with a duly perfected security interest (generally defined as a lien which had been created by an agreement as defined by law, or a nonconsensual lien).  They may also include loans to purchase some appliances and jewelry.  Generally, you must reaffirm, redeem or surrender the personal property if there is a lien (security interest).  You must file a statement of your intention to reaffirm, redeem or surrender with the court.  Within 30 days of the meeting of creditors, you must perform the stated intention.  The law is unclear as to what happens if you do not comply with your stated intent.  Some creditors have interpreted the law as giving them the right to repossess the property.

The most common examples of security interest include the mortgage on your home or the note on your vehicle.  They are considered secure because as we know if you do not make that mortgage payment, they likely foreclose on your home; if you do not make that car or truck payment, they repossess it.  The reason they can do this, well is because that lien is secured by the property it helped you purchase.

In bankruptcy, you’ll be asked to list all of your debt. this includes secured debt and unsecured debt.

 

 

O’Fallon Location:
Markwell Law, LLC
1031 Peruque Crossing Ct, Ste. B
O’Fallon, MO 63366
636-486-1093
 

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We help people file for bankruptcy relief under the Bankruptcy Code.

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By: Guss Markwell

 

 

 

 

About the author 

Guss Markwell

Originally from St. Louis Missouri, I grew up in a strong Midwest and moral family who taught me right from wrong and to stand up for my rights and the rights of others. In these tough economic times, you need an advocate on your side. Why do I practice law? Often, people are facing seemingly insurmountable opposition with little or no ability to overcome great odds. It is my position that we should all be fighting for those who find themselves alone, afraid, and at times unpopular. I subscribe to the notion that a society should be judged by how it treats its most vulnerable members. I represent, and I fight for, those people. “There is light at the end of that tunnel, don’t stop.”

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